NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
Mphasis Ltd. reported revenue of $421 million up 2.4% constant currency QoQ (our estimate: 2.3%), as Direct biz (96% of revenue) grew 2.4% QoQ. Operating profit margin stood at 15.4%, up 40 bps QoQ (our estimate: 15.4%) driven by operating efficiencies and forex (+20 bps).
Management expects sequential growth expectations in Q3/Q4 driven by BFS ramp-ups, while operating profit margin guidance is retained at 14.6%-16%.
We revise our FY25/FY26E EPS estimate by -1.9%/-4.6% given the need for increased investments to drive up deal wins.
We believe growth to sustain led by-
Volume uptick in mortgage,
Ramp-up in banking, financial services and
Increased focus on AI deals.
However, the valuation is full, thus we maintain ‘Reduce' rating with target price of Rs 2,970 (at 26 times FY27E).
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
