ULJK maintains 'Buy' on Mphasis with target of Rs 636
ULJK Securities has maintained its 'Buy' call on Mphasis with a price target of Rs 636.
By ET Bureau |
MUMBAI: ULJK Securities has maintained its ���Buy��� call on Mphasis with a price target of Rs 636.
In its results update report, the brokerage says, ���We remain with our ���BUY��� recommendation with a revised target price of Rs 636 with a PE of 15x for the FY09 earnings of Rs 42.4. We have arrived this valuation on the bank of our assumptions that company could benefit with its expansion in the ITO space, geographical presence, and vertical presence along with maintaining its operational metrics across the verticals.���
MphasiS reported revenue of Rs 11,055 million vs Rs 10,484 million in the third quarter FY���09 with a growth rate of 5.76% and 42% on QoQ and YoY basis respectively. The company has shown a muted performance on its margins which increased from 21.67% to 21.75% on QoQ basis and an improvement of 8.44% on YoY basis.
The bottom line increased to Rs 2292 million from Rs 2242 million and has shown an improvement of 2.2% on QoQ basis and 127% on YoY basis. Bottom line growth is in line with our expectations of Rs 2342 million. The PAT margins have increased from 12.97% to 20.73% on YoY basis and dropped from 21.40% on QoQ basis.
In its results update report, the brokerage says, ���We remain with our ���BUY��� recommendation with a revised target price of Rs 636 with a PE of 15x for the FY09 earnings of Rs 42.4. We have arrived this valuation on the bank of our assumptions that company could benefit with its expansion in the ITO space, geographical presence, and vertical presence along with maintaining its operational metrics across the verticals.���
MphasiS reported revenue of Rs 11,055 million vs Rs 10,484 million in the third quarter FY���09 with a growth rate of 5.76% and 42% on QoQ and YoY basis respectively. The company has shown a muted performance on its margins which increased from 21.67% to 21.75% on QoQ basis and an improvement of 8.44% on YoY basis.
The bottom line increased to Rs 2292 million from Rs 2242 million and has shown an improvement of 2.2% on QoQ basis and 127% on YoY basis. Bottom line growth is in line with our expectations of Rs 2342 million. The PAT margins have increased from 12.97% to 20.73% on YoY basis and dropped from 21.40% on QoQ basis.
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