Mphasis Ltd. (MPHASIS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Coforge

Persistent Syste

Tata Technolog.

L&T Technology

LTM

Tech Mahindra

Inventurus Knowl

Wipro

Tata Elxsi

Mphasis

Hexaware Tech.

Why is Mphasis Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate 9.24% of over the last 5 years

Flat results in Mar 26

DEBTORS TURNOVER RATIO(HY) Lowest at 3.79 times
OPERATING PROFIT TO INTEREST (Q) Lowest at 10.41 times
INTEREST(Q) Highest at Rs 77.34 cr

With ROE of 17.6, it has a Expensive valuation with a 3.9 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -8.72%, its profits have risen by 11% ; the PEG ratio of the company is 2.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -8.72% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Mphasis for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Mphasis

-8.58%

-0.30

28.09%

Sensex

-3.53%

-0.26

13.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.31%

EBIT Growth (5y)

9.24%

EBIT to Interest (avg)

16.75

Debt to EBITDA (avg)

0.69

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

1.37

Tax Ratio

25.77%

Dividend Payout Ratio

63.65%

Pledged Shares

Institutional Holding

65.16%

ROCE (avg)

29.15%

ROE (avg)

18.84%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.95

EV to EBIT

17.27

EV to EBITDA

14.06

EV to Capital Employed

4.08

EV to Sales

2.64

PEG Ratio

2.13

Dividend Yield

2.56%

ROCE (Latest)

23.60%

ROE (Latest)

17.58%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

NET SALES(Q)

Highest at Rs 4,242.67 cr

PBDIT(Q)

Highest at Rs 805.26 cr.

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 1,752.71 cr

OPERATING PROFIT TO NET SALES(Q)

Highest at 18.98%

PBT LESS OI(Q)

Highest at Rs 573.40 cr.

PAT(Q)

Highest at Rs 509.64 cr.

EPS(Q)

Highest at Rs 26.71

-11What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.79 times

OPERATING PROFIT TO INTEREST (Q)

Lowest at 10.41 times

INTEREST(Q)

Highest at Rs 77.34 cr

Loading Valuation Snapshot...

Here's what is working for Mphasis

Net Sales - Quarterly

Highest at Rs 4,242.67 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 805.26 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 18.98%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 573.40 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 509.64 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 26.71

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 1,752.71 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Mphasis

Interest - Quarterly

At Rs 77.34 cr has Grown at 88.04%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 10.41 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio- Half Yearly

Lowest at 3.79 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Interest - Quarterly

Highest at Rs 77.34 cr

in the last five quarters and Increased by 88.04 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

Highest at Rs 107.92 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income