Mphasis Ltd - Stock Valuation and Financial Performance

BSE: 526299 | NSE: MPHASIS | IT - Software | Mid Cap

Mphasis Share Price

2,782.75 -6.75 -0.24%
as on 21-Nov'24 16:00

DeciZen - make an informed investing decision on Mphasis

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Mphasis stock performance -

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P/E Ratio (CD):
33.13
Market Cap:
52,826.1 Cr.
52-wk low:
2,180.1
52-wk high:
3,187

Is Mphasis Ltd an attractive stock to invest in?

1. Is Mphasis Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Mphasis Ltd is a good quality company.

2. Is Mphasis Ltd undervalued or overvalued?

The key valuation ratios of Mphasis Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Mphasis Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Mphasis Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Mphasis:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Mphasis Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 16.5%14.8%17.5%18.6%24.4%26.2%25.2%27.4%29.1%24.1%-
Value Creation
Index
0.20.10.30.40.80.91.21.41.61.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 5,7956,0816,0766,5467,7318,8449,72211,96113,79913,27913,709
Sales YoY Gr.-4.9%-0.1%7.7%18.1%14.4%9.9%23%15.4%-3.8%-
Adj EPS 30.129.134.343.456.959.362.174.485.281.784.2
YoY Gr.--3.5%18%26.7%31%4.2%4.6%19.8%14.6%-4.1%-
BVPS (₹) 260.3277.8291.5282279.3309.4345.8363.7410.4451.9457.8
Adj Net
Profit
6336117218401,0601,1061,1611,3971,6051,5441,595
Cash Flow from Ops. 6167316647239501,3211,4551,7161,4622,180-
Debt/CF from Ops. 0.90.60.40.50.60.40.40.30.10.7-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 9.7%11.4%11%-3.8%
Adj EPS 11.7%7.5%9.6%-4.1%
BVPS6.3%10.1%9.3%10.1%
Share Price 21.2% 25.6% -5.9% 19.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
11.910.81214.419.82018.820.721.618.518.5
Op. Profit
Mgn %
1514.815.916.217.118.718.517.717.61718.3
Net Profit
Mgn %
10.91011.912.813.712.511.911.711.611.611.6
Debt to
Equity
0.10.100.10.10.10.10.100.20
Working Cap
Days
13913714013513312812011311312184
Cash Conv.
Cycle
3-1-1-1-8-13-513273232

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 10.95%

Return on Equity has declined versus last 3 years average to 18.50%

Net Profit has been subdued in last 3 years 9.61%

Sales growth is not so good in last 4 quarters at 2.47%

Latest Financials - Mphasis Ltd.

Standalone Consolidated
TTM EPS (₹) 78.5 84.2
TTM Sales (₹ Cr.) 9,151 13,709
BVPS (₹.) 290.5 457.8
Reserves (₹ Cr.) 5,311 8,480
P/BV 9.60 6.09
PE 35.53 33.13
From the Market
52 Week Low / High (₹) 2180.05 / 3186.95
All Time Low / High (₹) 1.75 / 3659.75
Market Cap (₹ Cr.) 52,826
Equity (₹ Cr.) 189.4
Face Value (₹) 10
Industry PE 34.4

Management X-Ray of Mphasis:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Mphasis

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales5,7956,0816,0766,5467,7318,8449,72211,96113,79813,279
Operating Expenses 4,9255,1935,1095,4876,4077,1937,9199,84411,36511,020
Manufacturing Costs96898169319188191246216183
Material Costs03840000000
Employee Cost 3,5873,7303,7103,8184,2994,9235,6307,0358,0767,925
Other Costs 1,2421,3351,3141,6001,7892,0832,0992,5633,0732,911
Operating Profit 8708889681,0591,3241,6501,8032,1182,4342,259
Operating Profit Margin (%) 15.0%14.6%15.9%16.2%17.1%18.7%18.5%17.7%17.6%17.0%
Other Income 197202240165177178133160162381
Interest 282414131781637497161
Depreciation 98121797176232242291325410
Exceptional Items -3-55-15-13000000
Profit Before Tax 9388901,0991,1281,4071,5151,6311,9132,1732,068
Tax 263258308290334331414482535514
Profit After Tax 6756327928371,0731,1851,2171,4311,6381,555
PAT Margin (%) 11.6%10.4%13.0%12.8%13.9%13.4%12.5%12.0%11.9%11.7%
Adjusted EPS (₹)32.130.137.643.357.663.565.176.286.982.3
Dividend Payout Ratio (%)50%67%45%46%47%55%100%60%58%67%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 5,4695,8386,1335,4505,2015,7716,4686,8327,7318,541
Share Capital 210210210193186187187188188189
Reserves 5,2595,6285,9235,2575,0145,5856,2816,6447,5438,352
Minority Interest0000000000
Debt4343112603905435715135271981,544
Long Term Debt30917900000000
Short Term Debt1251332603905435715135271981,544
Trade Payables406448388502785667596850864798
Others Liabilities 1,0243864745377621,5281,6952,3862,5742,961
Total Liabilities 7,3346,9837,2556,8807,2908,5389,27310,59511,36713,845

Fixed Assets

Gross Block3,1841,7162,1082,1322,4943,5813,7444,7425,2277,044
Accumulated Depreciation8501191872483245687259681,1681,511
Net Fixed Assets2,3341,5971,9211,8842,1703,0133,0203,7744,0605,533
CWIP 2056123173113261
Investments 1,4432,1222,3961,7821,3291,3261,8461,8131,7533,090
Inventories0400000000
Trade Receivables6256496288129558359292,2272,5212,426
Cash Equivalents 1,3218576147076421,1261,0629491,053814
Others Assets1,5911,6981,6951,6932,1912,2212,4121,8211,9481,921
Total Assets 7,3346,9837,2556,8807,2908,5389,27310,59511,36713,845

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 6167316647239501,3211,4551,7161,4622,180
PBT 9419451,1141,1411,4071,5151,6311,9132,1732,068
Adjustment -22-21-541127159214322459299
Changes in Working Capital -2052-105-150-14242-45-150-578403
Tax Paid -277-234-290-278-343-396-345-369-593-590
Cash Flow From Investing Activity -366-158268493289141-822-282182-2,482
Capex -57-122-115-31-81-124-125-119-111-92
Net Investments -343-103337506340244-716-195265-2,423
Others 34674618302120322933
Cash Flow From Financing Activity -186-568-710-1,380-1,342-825-861-1,389-1,44077
Net Proceeds from Shares 0003101527442730
Net Proceeds from Borrowing 0000000000
Interest Paid -22-18-7-10-16-78-13-28-97-140
Dividend Paid -172-404-505-395-465-607-653-1,218-865-943
Others 8-146-198-978-870-155-223-188-5051,130
Net Cash Flow 645222-164-103637-22945204-225
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)12.7611.1713.2214.4620.1621.619.8821.5222.4919.11
ROCE (%)16.4914.7817.4918.5724.4326.1925.2127.3929.124.14
Asset Turnover Ratio0.810.850.850.931.091.121.091.21.261.05
PAT to CFO Conversion(x)0.911.160.840.860.891.111.21.20.891.4
Working Capital Days
Receivable Days44383840423733486368
Inventory Days0000000000
Payable Days04,09600000000

Mphasis Ltd Stock News

Mphasis Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Mphasis on 21-Nov-2024 16:00 is ₹2,782.8.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 21-Nov-2024 16:00 the market cap of Mphasis stood at ₹52,826.1.
The latest P/E ratio of Mphasis as of 21-Nov-2024 16:00 is 35.53.
The latest P/B ratio of Mphasis as of 21-Nov-2024 16:00 is 9.60.
The 52-week high of Mphasis is ₹3,187 and the 52-week low is ₹2,180.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Mphasis is ₹9,151 ( Cr.) .

About Mphasis Ltd

Incorporated in 1992, Mphasis serves marquee customers across the globe including many top global banks, various mortgage lenders, and many top global insurance companies. Blackstone Private Equity (NYSE:BX), the world's largest private equity firm acquired Hewlett Packard Enterprise's (NYSE: HPE) stake (60.5%) in Mphasis. This deal represents the largest technology investment as well as largest acquisition by Blackstone in India.

Mphasis' core reference architectures & tools, combined with strong domain expertise in banking, financial services and insurance verticals and deep relationship with marquee global customers has enabled delivery of growth above industry average in Direct International segment. Mphasis' experienced management team, board of directors and long-term commitment from company’s largest customer, HPE aid positive economic impact and long-term value for investors.

Mphasis applies next-generation technology to help enterprises transform businesses globally. Customer centricity is foundational to Mphasis and is reflected in the Mphasis’ Front2Back Transformation approach. Front2Back uses the exponential power of cloud and cognitive to provide hyper-personalized (C=X2C2TM=1) digital experience to clients and their end customers. Mphasis’ Service Transformation approach helps ‘shrink the core’ through the application of digital technologies across legacy environments within an enterprise, enabling businesses to stay ahead in a changing world. Mphasis’ core reference architectures and tools, speed and innovation with domain expertise and specialization are key to building strong relationships with marquee clients.

Business area of the company

Mphasis is a global service provider, delivering technology based solutions across many sectors.

Services offered by the company

  • Application Services
  • Blockchain
  • Business Process Services
  • Cloud
  • Cognitive
  • Cyber Security
  • Devops
  • Digital
  • Governance, Risk & Compliance
  • Product Engineering
  • Infrastructure Services
  • Enterprise Automation

Awards

2014

  • Mphasis recognized as leader on the 2014 IAOP global outsourcing 100 list.
  • Mphasis wins Silver medal in the APAC Large Outsourced Contact Center Category.

2015

  • Mphasis has been ranked Number 29 of 100 largest financial technology vendors.
  • Mphasis recognized in 2015 Innovation and Excellence Awards for Global Technology.

2016

  • Mphasis CEO, named 'CEO of the Year' - Gold Winner by One Planet Awards.
  • Mphasis Next labs awarded 2nd Runner Up under Clouds Solution category.
  • Mphasis CEO named as CEO of the year at CEO Connection's 2016 Mid-Market Award.
  • Mphasis ranked 2 in Silicon Review's Top 30.

2017

  • Mphasis' Deep Insights wins AIconics Best Application of AI.
  • Mphasis Named Major Contender and Star Performer in Everest Group 2017 PEAK Matrix Report.
  • Mphasis wins the 'Imagination' Category at the 2017 ISG Paragon.
  • Mphasis' Eldorado wins Bronze STEVIE Award for 'Company of The Year; in 2017.

2018

  • Mphasis' Deep Insights Named a Winner under the 'Artificial Intelligence' category.
  • Mphasis CEO Nitin Rakesh wins Gold STEVIE Award for 'Executive of the year'.
  • Mphasis Veda Iyer wins CMO Asia's 'Women Leadership in Industry' Award.
  • CEO Nitin Rakesh honored as Gold winner in the Annual 2018 CEO World Award.
  • Mphasis CEO Nitin Rakesh wins the '2018 Outstanding 50 Asian Americans' Award.
  • Debashis Singh, Chief Information Officer recognized as Digital Leader by Data Quest Digital Leader 2018 Awards.

2019

  • Mphasis listed in Indeed's ‘Top-Rated Workplaces 2019 - Tech in India’.
  • Mphasis wins ISG Paragon Awards Americas in Impact Category, 2019.
  • Mphasis CEO Nitin Rakesh included in Exhibit Magazine’s ‘Top 100 Tech Leaders’.
  • Nitin has been awarded a Gold Stevie for Tech Innovator of the Year - Services.
  • Veda Iyer, CMO & Head Sales, APAC, recognized amongst 'India's Top 100 Women in Finance' for 2019 by AIWMI
  • Mphasis and the National Centre for Promotion of Employment for Disabled People (NCPEDP) win the Zero Project 2019 Award.
  • Mphasis one amongst Bangalore’s top 50 Hot Brands 2019 organized by Paul Writer.

2020

  • Mphasis wins Brandon Hall Group Gold award 2020, for Excellence in the Talent Acquisition category.
  • Nitin Rakesh, CEO, Mphasis, wins 2020 ISG Paragon Awards APAC in ‘Leadership’ category
  • Dr. Damini Gupta, AVP & Lead, AI & Fintech, wins in ‘Woman in Technology’ category.
  • Mphasis Ranks Among the Top 50 of UK's Fastest Growing Indian Companies.
  • Mphasis Digital Risk bags the esteemed 2020 HW Tech 100 Mortgage Winner Award.
  • Mphasis CFO, V. Suryanarayanan recognized with The CFO India’s ‘League of Excellence 2020’ awards.
  • Mphasis wins the Rotary Karnataka CSR Award 2020.
  • Nitin Rakesh, one of the first 250 CEO signatories of The Valuable 500.
  • Mphasis is Great Place to Work- Certified company.
  • Veda Iyer, Global CMO and Head Sales - APAC, Mphasis wins in the 'Women in Tech: Leader/Innovator/Disruptor of the year' category.

Milestones

  • 1998- Mphasis begins as high end technology architecting firm.
  • 2004- Mphasis acquired Kshema Technologies & Onida Info Tech Exceeds $100MM in revenue.
  • 2006- Acquired Princeton Consulting & Eldorado Computing EDS acquires 62% stake in Mphasis.
  • 2008- HP acquires EDS and Mphasis
  • 2009- Mphasis acquired AIG Software Solutions EDS re-branded to become HP Enterprise
  • 2010- Mphasis global expansion - Sri Lanka, Australia & Poland Mphasis acquired Fortify IS
  • 2010- Mphasis reaches $1billion in revenues
  • 2011- Mphasis acquires WYDE
  • 2013- Mphasis acquires Digital Risk LLC
  • 2015- Launch of NextAngles - automation led compliance product. Launch of NEXT Labs solution - HyperGraf & InfraGraf
  • 2016- Launch of DeepInsights Machine Learning platform
  • 2016- Blackstone acquires 61% stake in Mphasis from HPE
  • 2017- Launch of Front2Back (F2B) Transformation Strategy: C=X2C²TM=1
  • 2018- Mphasis acquires Stelligent Systems LLC
  • 2019- Launch of NEXT Labs Solution Autocode.AI and Optimize.AI
  • 2020- Mphasis enters into partnership with QEDIT
  • 2020- Mphasis has entered into a strategic partnership with US-based fintech startup Upswot.
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