Buy Mphasis, target price Rs 2600: JM Financial

JM Financial has buy call on Mphasis with a target price of Rs 2600. The current market price of Mphasis Ltd. is Rs 2416.65. Time period given by analyst is one year when Mphasis Ltd. price can reach defined target.

MphasiS Ltd., incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 45601.21 Crore) operating in IT Software sector.

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



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 3446.86 Crore, up 3.92 % from last quarter Total Income of Rs 3316.82 Crore and up 25.91 % from last year same quarter Total Income of Rs 2737.55 Crore. Company reported net profit after tax of Rs 401.88 Crore in latest quarter.

Investment Rationale
Mphasis still trades at a discount to its Tier II peers despite the unique success it has exhibited in scaling up large client accounts and aims to replicate that outside of the BFS vertical through a mix of NCA and mining efforts. It remains confident of growth remaining on par with peers, and given the likely ‘stable to improving’ margins trajectory it retains BUY.

Promoter/FII Holdings
Promoters held 55.72 per cent stake in the company as of 30-Jun-2022, while FIIs owned 20.48 per cent, DIIs 18.16 per cent.