Buy Mphasis, target price Rs 2770: Motilal Oswal

Motilal Oswal has buy call on Mphasis with a target price of Rs 2770. The current market price of Mphasis is Rs 2602.65. 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 48913.35 Crore) operating in IT Software sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 2737.55 Crore, up 7.07 % from last quarter Total Income of Rs 2556.88 Crore and up 17.70 % from last year same quarter Total Income of Rs 2325.88 Crore. Company reported net profit after tax of Rs 339.69 Crore in latest quarter.


Investment Rationale
The brokerage raises estimates by 2%/5% for FY22/FY23,factoring in higher growth in the Direct business. Despite the DXC overhang, with strong digital capabilities and client relationships, MPHL is well-positioned to be a key beneficiary in the current context. Its TP implies 28x FY23E EPS.

Promoter/FII Holdings
Promoters held 56 per cent stake in the company as of June 30, 2021, while FIIs held 20.8 per cent, DIIs 18.5 per cent and public and other 4.8 per cent.