Investec Securities maintains buy rating on Mphasis, revises target price to Rs 1,060

Investec Securities has maintained buy rating on Mphasis in the long term and revised target price to Rs 1060 from Rs 1050. The stock ended up 1.5% at Rs 922.20 on Monday while the BSE Sensex closed 72.50 points down at 40,284.19.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 2158.11 crore, up 4.63% from last quarter sales of Rs 2062.56 crore and up 12.70% from last year same quarter sales of Rs 1914.84 crore. The company has reported net profit after tax of Rs 273.30 crore in the latest quarter.


Investment Rationale

Mphasis reported revenues at $305 million, in-line with estimates, and EBIT percentage at 16.1%, 25 bps below estimates, said Investec. Mphasis is trading at 13.5 times FY21 estimated EPS and is the only midcap stock with a high yield on payouts of 7% , which restricts downside risks. said Investec.