MphasiS Ltd. share price target

What should investors do? Mphasis' share price has grown by ~7x over the past Recent run up in price prompts us to maintain HOLD rating Target Price and Valuation: We value Mphasis at | 3420 i.e. 36x P/E on FY23E EPS...

MPHL's 2QFY22 performance was led by a 9.9% CC QoQ growth in the Direct business, while the DXC vertical (6% of revenue) again declined (-24.5% QoQ CC). EBIT margin adjusted for one-time M&A; charge remained stable (-10bp QoQ). It reported a net new deal TCV of USD241m in 2QFY22. With the management reiterating its industry-leading growth guidance in the Direct business, the standout growth in Direct should continue (34% YoY in FY22E). We see a strong new-gen deal pipeline (+13% QoQ/28% YoY) as a testimony to the strength of the demand environment. This should lead to...

Q2 revenue grew 6.4% QoQ USD, outperforming our (4.9%) and street estimates; EBIT margin a miss at 15.1%

Top 5 client's average contribution has increased to $120Mn+ on TTM basis, Top 6-10 clients have grown 49% YoY on TTM basis winning market share in large accounts via success in client mining & cross-selling. Strong revenue growth of 6.1% QoQ USD was driven by exceptional...

TAM to expand because of cross-selling opportunities to Blink's marquee clientele (exhibit 2); upstream capabilities (research, strategy, design) to expand wallet share in Mphasis's existing clientele. Mphasis acquired 100% stake in Blink Interactive (a US based company found in 2000) providing research, strategy and design of user experience in hardware and software products. Blink has designed marquee products such as Amazon Alexa, Microsoft X-box etc. Though Blink's revenue is currently...

Mphasis (MPHL)'s 1QFY22 performance was led by 9.8% CC QoQ growth in the Direct business, while the DXC vertical (<10% of revenues now) declined once again (-18.1% QoQ CC). The EBIT margin remained stable (-20bp QoQ), as increased hiring was compensated by lower SG&A; costs. It reported the...

Expects industry leading growth in direct and EBIT margin of 15.5-17% What should investors do? Mphasis' share price has grown by ~4x over the past five years (from ~| 535 in Jul 2016 to ~| 2537 levels in July 2021). However, recent run up in price prompts us to maintain HOLD rating Target Price and Valuation: We value Mphasis at | 2725 i.e. 29x P/E on FY23E EPS...

MPHL grew 6.3% QoQ USD in Q1, outperforming our (4%) and street estimates. EBIT margin was a miss at 15.9% due to the pandemic impact

MPHL's 4QFY21 revenue growth was led by 3.5% CC QoQ growth in the Direct business, while DXC vertical (12% of revenue, -7.7% QoQ CC) remains a drag. EBIT margin dip of 30bp QoQ was due to higher sales investments. It won USD245m of new deals in 4QFY21, and announced its largest ever...