2687.4000 -6.00 (-0.22%)
NSE Jun 18, 2025 15:31 PM
Volume: 262.8K
 

2687.40
-0.22%
HDFC Securities
Following a strong growth delta from DXC-HP business over the past two years, Direct core is expected to drive revenue growth hearon. We remain positive on Direct core based on (1) High share of digital/new gen services (46% of rev, +49% YoY in FY19), (2) Strong deal trends (USD 616mn TCV ex-renewals in FY19 in Direct International), (3) Growth adjacencies from Blackstone portfolio (~5% of Direct Core revenue and 70% growth in FY19) with large opportunities, and (4) Traction via Microsoft/Google Cloud partnership. DXC-HP division is expected to moderate (11.5% CAGR) on a high base. Key Risks include slowdown in BFSI (high concentration) and INR appreciation. We maintain BUY on Mphasis following an inline 4Q. Growth drivers are sustainable (Direct Core-led). Mphasis is the most attractively valued midcap IT and we have a TP of Rs 1,330, at 18x FY21E.
Number of FII/FPI investors increased from 1002 to 1016 in Mar 2025 qtr.
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