Shares of this midcap company jumped around 1 percent in Tuesday’s trading session after Morgan Stanley, Societe Generale and Kotak mutual funds bought stakes worth 1,900 crores at an average price of Rs 2,363 per piece.
With a market capitalisation of Rs. 45,307 crores, the shares of Mphasis Ltd started Tuesday’s trading session on a higher note at Rs. 2,400 compared to its previous close of Rs. 2,394.60. During the trading session, the shares hit a high of Rs. 2,414, gaining around 1 percent and are currently trading at Rs. 2,399 apiece.
As per the NSE Bulk Deal data, Kotak Mutual Fund under its Emerging Equity Scheme acquired a 1.7 percent stake in Mphasis and bought a 0.83 percent stake under its India Midcap Fund scheme. Moreover, Bloomberg data indicates that as of May 2024, Kotak Mahindra AMC already held a 2.2 percent stake in the company.
Additionally, institutional investors such as Morgan Stanley and Societe Generale acquired 1.18 percent and 0.56 percent stakes, respectively, in Mphasis at an average price of Rs. 2,363 per share. This price represents a discount of slightly over one percent from the previous closing price of Rs. 2,394.60 per share.
This comes after Blackstone, the largest shareholder in the company, sold its stake in the company through bulk deals on the NSE. The total deal was valued at Rs 6,735.60 crores.
Coming onto the company’s financial statements, the revenue increased by 2 percent from Rs. 3,337.95 crores during the December quarter to Rs. 3,412.05 crores in the March quarter. In addition, the net profits jumped by 5 percent from Rs. 373.6 crores to Rs. 393.22 crores during the same period.
During the March quarter, Mphasis derived revenue from various regions worldwide, with the Americas being the primary contributor at 81 percent. Following closely, the EMEA market contributes around 11 percent to the revenue stream, while the rest of the world accounts for the remaining 8 percent.
The IT company secured new total contract value (TCV) wins of USD 177 million in Q4 FY24, with 77 percent of these deals coming from new-gen services. For the full year, the new TCV stood at USD 1.38 billion in FY 2024.
The company aims to achieve an EBIT margin of 14.6 percent to 16 percent in FY25 and expects its revenue growth to outperform industry standards, with a focus on tech-led and account-focused strategies.
Headquartered in Bengaluru, Mphasis a global Information Technology (IT) solutions provider specializing in providing cloud and cognitive services, applies next-generation technology to help enterprises transform businesses globally.
Written By Vaibhav Patil
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