revenue (our estm: 31.9% QoQ) largely led by inorganic contribution from acquired Highwire business while organic business biz segments remained in flat to slightly negative growth range. OPM declined 360bps QoQ to 17.0% (our estm: 15.0%) due to decline in margins of all 3 biz segments where-in Platform business was impacted by lower EBITDA margin of acquired Highwire Biz (early double digit). MPS expects Highwire business to deliver improved profitability (40-45% EBITDA margins) by end of FY22 led by cost take-outs (IT, Rent, Other...

MPS Ltd. is trading below all available SMAs

MPS Ltd.

20 May 2020

2147.80

-1.81%

MPS

Buy: MPS Ltd.

Dolat Capital

Weak Results; Large Deal Wins in Content biz to drive recovery MPS reported weak Q4FY20 results, with a 9.0% QoQ and 15.6% YoY decline in revenue (our estm: 1.3% QoQ growth), largely led by QoQ decline of 15% and 19% in Platform and E-Learning business. OPM contraction of about 480bps QoQ to 12.7%, (our estm: 19.8%) primarily due to sharp absolute revenue fall off directly impacting EBIT. Content solutions revenues fell 3.0% YoY in Q4 but expects positive momentum hereon as it has started rampup of a large deal won in the...

MPS Ltd. has an average target of 2881.00 from 1 broker.

MPS Ltd.

19 Nov 2019

2147.80

-1.81%

MPS Ltd.

Sell: MPS Ltd.

ICICI Securities Limited

Although the company's revenues have grown at 12.1% CAGR in FY16-19, we believe majority of growth is from acquisition. We believe the organic growth has been below 5% in FY16-19 mainly due to the subdued performance of the content solution business. The content solution business (accounts for 64% of total topline) has declined at 3.2% CAGR in FY17-19. In addition, the market in which MPS operates is fragmented and publishing outsourcing vendors are not price settlers but are compensated by volumes, which also keep revenue growth under check. Further, higher client...

MPS Ltd. has an average target of 2881.00 from 1 broker.

Is MPS Ltd. worth buying?

88 Votes:

Buy 79.55%

Sell 10.23%

Hold 10.23%

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