Mphasis Ltd - Stock Valuation and Financial Performance

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

Mphasis Share Price

2,445.15 -0.25 -0.01%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on Mphasis

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Semi Strong

Mphasis stock performance -

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P/E Ratio (CD):
29.49
Market Cap:
46,213.5 Cr.
52-wk low:
1,660.7
52-wk high:
2,835

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 Somewhat overvalued zone.

3. Is Mphasis Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Mphasis Ltd is likely to Rise-somewhat 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 5.6%11.1%10.2%11.5%13.8%18.4%19.1%17.9%20%21.5%-
Value Creation
Index
-0.6-0.2-0.3-0.20.00.40.40.60.80.9-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 6,2255,7956,0816,0766,5467,7318,8449,72211,96113,79913,228
Sales YoY Gr.--6.9%4.9%-0.1%7.7%18.1%14.4%9.9%23%15.4%-
Adj EPS 34.830.129.134.343.456.959.362.174.485.282.9
YoY Gr.--13.5%-3.5%18%26.7%31%4.2%4.6%19.8%14.6%-
BVPS (₹) 583.2260.3277.8291.5282279.3309.4345.8363.7410.4438.3
Adj Net
Profit
7316336117218401,0601,1061,1611,3971,6051,567
Cash Flow from Ops. 4746167316647239501,3211,4551,7161,462-
Debt/CF from Ops. 2.70.90.60.40.50.60.40.40.30.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 9.3%16.1%16%15.4%
Adj EPS 10.5%14.4%12.8%14.6%
BVPS-3.8%7.8%9.9%12.8%
Share Price 19.3% 19.8% 13.3% 38%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
6.111.910.81214.419.82018.820.721.619.5
Op. Profit
Mgn %
16.71514.815.916.217.118.718.517.717.618
Net Profit
Mgn %
11.810.91011.912.813.712.511.911.711.611.9
Debt to
Equity
0.10.10.100.10.10.10.10.10-
Working Cap
Days
29813913714013513312812011311380
Cash Conv.
Cycle
-133-1-1-1-8-13-5132739

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 15.99%

Net Profit is growing at healthy rate in last 3 years 12.83%

Return on Equity has declined versus last 3 years average to 19.50%

Sales growth is not so good in last 4 quarters at -3.46%

Latest Financials - Mphasis Ltd.

Standalone Consolidated
TTM EPS (₹) 80.6 82.9
TTM Sales (₹ Cr.) 9,249 13,228
BVPS (₹.) 281.5 438.3
Reserves (₹ Cr.) 5,130 8,095
P/BV 8.69 5.58
PE 30.33 29.49
From the Market
52 Week Low / High (₹) 1660.65 / 2835.00
All Time Low / High (₹) 1.75 / 3659.75
Market Cap (₹ Cr.) 46,213
Equity (₹ Cr.) 189
Face Value (₹) 10
Industry PE 33.5

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

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales2,5945,7956,0816,0766,5467,7318,8449,72211,96113,798
Operating Expenses 2,1644,9255,1935,1095,4876,4077,1937,9199,84411,365
Manufacturing Costs3596898169319188191246216
Material Costs00384000000
Employee Cost 1,6273,5873,7303,7103,8184,2994,9235,6307,0358,076
Other Costs 5021,2421,3351,3141,6001,7892,0832,0992,5633,073
Operating Profit 4308708889681,0591,3241,6501,8032,1182,434
Operating Profit Margin (%) 16.6%15.0%14.6%15.9%16.2%17.1%18.7%18.5%17.7%17.6%
Other Income 60197202240165177178133160162
Interest 11282414131781637497
Depreciation 5098121797176232242291325
Exceptional Items -6-3-55-15-1300000
Profit Before Tax 4229388901,0991,1281,4071,5151,6311,9132,173
Tax 119263258308290334331414482535
Profit After Tax 3036756327928371,0731,1851,2171,4311,638
PAT Margin (%) 11.7%11.6%10.4%13.0%12.8%13.9%13.4%12.5%12.0%11.9%
Adjusted EPS (₹)14.432.130.137.643.357.663.565.176.286.9
Dividend Payout Ratio (%)49%50%67%45%46%47%55%100%60%58%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 5,1075,4695,8386,1335,4505,2015,7716,4686,8327,731
Share Capital 210210210210193186187187188188
Reserves 4,8965,2595,6285,9235,2575,0145,5856,2816,6447,543
Minority Interest0000000000
Debt431434311260390543571513527198
Long Term Debt4313091790000000
Short Term Debt0125133260390543571513527198
Trade Payables451406448388502785667596850864
Others Liabilities 9041,0243864745377621,5281,6952,3862,574
Total Liabilities 6,8937,3346,9837,2556,8807,2908,5389,27310,59511,367

Fixed Assets

Gross Block3,2783,1841,7162,1082,1322,4943,5813,7444,7425,207
Accumulated Depreciation8738501191872483245687259681,148
Net Fixed Assets2,4042,3341,5971,9211,8842,1703,0133,0203,7744,060
CWIP 620561231731132
Investments 1,8151,4432,1222,3961,7821,3291,3261,8461,8131,753
Inventories0040000000
Trade Receivables7786256496288129558359292,2272,521
Cash Equivalents 4581,3218576147076421,1261,0629491,053
Others Assets1,4311,5911,6981,6951,6932,1912,2212,4121,8211,948
Total Assets 6,8937,3346,9837,2556,8807,2908,5389,27310,59511,367

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 1986167316647239501,3211,4551,7161,462
PBT 4289419451,1141,1411,4071,5151,6311,9132,173
Adjustment 21-22-21-541127159214322459
Changes in Working Capital -121-2052-105-150-14242-45-150-578
Tax Paid -130-277-234-290-278-343-396-345-369-593
Cash Flow From Investing Activity 220-366-158268493289141-822-282182
Capex -34-57-122-115-31-81-124-125-119-111
Net Investments 230-343-103337506340244-716-195265
Others 24346746183021203229
Cash Flow From Financing Activity -429-186-568-710-1,380-1,342-825-861-1,389-1,440
Net Proceeds from Shares 000031015274427
Net Proceeds from Borrowing 0000000000
Interest Paid -11-22-18-7-10-16-78-13-28-49
Dividend Paid -418-172-404-505-395-465-607-653-1,218-865
Others 08-146-198-978-870-155-223-188-553
Net Cash Flow -11645222-164-103637-22945204
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)6.0312.7611.1713.2214.4620.1621.619.8821.5222.49
ROCE (%)7.7716.4914.7817.4918.5724.4326.1925.2127.3929.1
Asset Turnover Ratio0.370.810.850.850.931.091.121.091.21.26
PAT to CFO Conversion(x)0.650.911.160.840.860.891.111.21.20.89
Working Capital Days
Receivable Days101443838404237334863
Inventory Days0000000000
Payable Days004,0960000000

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 12-Apr-2024 16:59 is ₹2,445.2.
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 12-Apr-2024 16:59 the market cap of Mphasis stood at ₹46,213.5.
The latest P/E ratio of Mphasis as of 12-Apr-2024 16:59 is 30.33.
The latest P/B ratio of Mphasis as of 12-Apr-2024 16:59 is 8.69.
The 52-week high of Mphasis is ₹2,835 and the 52-week low is ₹1,660.7.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Mphasis is ₹9,249 ( 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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