Check Before You Invest : Mphasis Ltd

BSE: 526299 NSE: MPHASIS ISIN: INE356A01018

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Mphasis Ltd belong to?

Mphasis Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Mphasis Ltd a good quality company?

Mphasis Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Mphasis Ltd undervalued or overvalued?

Mphasis Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Mphasis Ltd a good buy now?

Mphasis Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Mphasis Ltd?

Mphasis Ltd revenue growth is 11.6% for FY-2026, which is above its 5-year CAGR of 10.31%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Mphasis Ltd?

Mphasis Ltd Return on capital employed is 23.31% for FY-2026, which is in line with its 5-year historical median of 24.14%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Mphasis Ltd?

Mphasis Ltd Return on Asset is 11.67%, which is below its 5-year historical median of 12.33%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Mphasis Ltd?

Mphasis Ltd Return on equity is 18.68% for FY-2026, which is in line with its 5-year historical median of 19.11%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Mphasis Ltd?

Mphasis Ltd Cash conversion cycle is 37 days, above its 5-year historical median of 31 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.99	1.05
ROE	18.68	19.11
ROCE	23.31	24.14
Cash Conversion Cycle	37 days	31 days

Q.6 Gross Profit margin of Mphasis Ltd?

Mphasis Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.6% for FY-2026, which is in line with its 5-year median of 18.7%, indicating stable margins.

Q.7 Operating Profit Margin of Mphasis Ltd?

Mphasis Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.68% for FY-2026, which is above its 5-year median of 17.7% indicating increasing margins.

Q.8 Net Profit Margin of Mphasis Ltd?

Mphasis Ltd Net Profit Margin is 11.73% for FY-2026, is in line with with its 5-year median of 11.87%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	19.6	18.7
Operating Profit Margin	18.68	17.7
Net Profit Margin	11.73	11.87

Q.9 Debt to Equity ratio of Mphasis Ltd?

Mphasis Ltd Debt-to-Equity ratio is 0.17, which is above with the industry average of 0.12, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Mphasis Ltd?

Mphasis Ltd Debt to cash flow from operations is 1.43, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Mphasis Ltd?

Promoters hold 30.55% of the Mphasis Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Mphasis Ltd vs industry peers?

Mphasis Ltd revenue CAGR is 10.31%, compared to the industry median CAGR of 18.62%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	11.6	18.6
Gross Profit Growth	13.5	11.2
Operating Profit Growth	12.1	12.6
Net Profit Growth	9.5	9.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.99	1.23
ROE	18.68	25.84
ROCE	23.31	32.8
Cash Conversion Cycle (days)	36.85	31

Valuation & price assessment

Q.1 Stock return of Mphasis Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 16.9% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	16.9%	5.5%	7.5%	-7%

Q.3 Valuation ratios of Mphasis Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	23.34	29.72	47.37
Price to Book	4.12	5.52	2.63
Price to Sales	2.74	3.52	4.79
EV to EBITDA	13.15	17.33	16.48

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