Buy MphasiS, target price Rs 2500: Emkay Global Financial Services

Emkay Global Financial Services has buy call on MphasiS with a target price of Rs 2500. The current market price of MphasiS Ltd. is Rs 1976.95. The time horizon given for the suggested stock recommendation is 12 months.

MphasiS, incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 37176.44 Crore) operating in IT Software sector.

MphasiS key Products/Revenue Segments include Computer Software for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 3563.23 Crore, up 3.38 % from last quarter Total Income of Rs 3446.86 Crore and up 22.31 % from last year same quarter Total Income of Rs 2913.16 Crore. Company has reported net profit after tax of Rs 418.46 Crore in latest quarter.

The company’s top management includes Mr.Davinder Singh Brar, Mr.Pankaj Sood, Mr.Kabir Mathur, Mr.Maureen Anne Erasmus, Mr.Marshall Jan Lux, Mr.Amit Dalmia, Mr.Amit Dixit, Mr.David Lawrence Johnson, Ms.Jan Kathleen Hier, Mr.Narayanan Kumar, Mr.Nitin Rakesh, Mr.Courtney Della Cava. Company has B S R & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 19 Crore shares outstanding.

Investment Rationale
The brokerage maintained its BUY with a TP of Rs 2,500 at22x Dec-24E EPS (earlier Rs2,600), considering reasonable valuation, steady wallet share gains, and expansion in addressable markets with competency build-up.

Promoter/FII Holdings
Promoters held 55.7 per cent stake in the company as of 30-Sep-2022, while FIIs owned 20.48 per cent, DIIs 17.56 per cent.