Hold MphasiS; target 630: Avinash Gorakshekar
Avinash Gorakshekar, Head Of Research, Anagram Capital Ltd. in a chat with ET Now gives his take on MphasiS.
By 
|
| Avinash Gorakshekar, Head Of Research, Anagram Capital Ltd. in a chat with ET Now gives his take on MphasiS.
What do you in light of the kind of movement that we are seeing with the rupee and the dollar make of an MphasiS?
On MphasiS as you were aware it’s a HP owned company and almost 70% revenue comes from HP to that extent definitely revenue visibility is assured. Our call on MphasiS is actually a hold. In fact we like MphasiS because it’s on the BPO space and on the IPO enabled space.
It has got pretty good visibility in fact in the recent quarter we saw almost 22 new client wins for MphasiS. So in terms of profitability margins also they had a EBITDA margin of close to about 25% odd. So going forward definitely the environment is going to be pretty challenging with the kind of rupee volatility one has seen but company also has a very huge cash positions in fact it has got about $13 million in cash which we believe could be used for good inorganic opportunities so typically looking at these factors we feel that the current valuations of roughly about 12 times FY12 numbers. The stock is a hold for us, we have a target of roughly about Rs.630 on the stock.
What do you in light of the kind of movement that we are seeing with the rupee and the dollar make of an MphasiS?
On MphasiS as you were aware it’s a HP owned company and almost 70% revenue comes from HP to that extent definitely revenue visibility is assured. Our call on MphasiS is actually a hold. In fact we like MphasiS because it’s on the BPO space and on the IPO enabled space.
It has got pretty good visibility in fact in the recent quarter we saw almost 22 new client wins for MphasiS. So in terms of profitability margins also they had a EBITDA margin of close to about 25% odd. So going forward definitely the environment is going to be pretty challenging with the kind of rupee volatility one has seen but company also has a very huge cash positions in fact it has got about $13 million in cash which we believe could be used for good inorganic opportunities so typically looking at these factors we feel that the current valuations of roughly about 12 times FY12 numbers. The stock is a hold for us, we have a target of roughly about Rs.630 on the stock.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
