Synopsis:
Mphasis Limited is in focus after Morgan Stanley has assigned a new target price with an overweight rating with an upside of more than 35%.
Morgan Stanley, one of the leading global brokerage firms, has set a new target price for a prominent IT stock, reflecting its latest evaluation of the company’s financial performance, growth prospects, and prevailing market trends.
With the market capitalization of Rs. 51,001.56 crore, the shares of Mphasis Limited is trading at Rs. 2,684.50, up by 0.24 percent from its previous day’s close price of Rs. 2,678.10 per equity share.
What’s the News?
Morgan Stanley has maintained its ‘overweight’ rating on the stock with the target price of Rs. 3,625, with an upside of 35 percent from CMP of Rs. 2,684.50. Morgan Stanley expects strong deal wins, improving growth trends, and attractive valuations, projecting that the stock is likely to outperform the country index over the next 60 days.
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About the Company & Financials
Mphasis Limited, founded in 1992 and based in Bengaluru, India, is an IT solutions provider operating globally across the United States, India, Europe, the Middle East, and Africa. The company specializes in cloud and cognitive services and serves multiple industries, including banking, insurance, logistics, technology, healthcare, energy, and manufacturing.
It operates through segments like Banking & Financial Services, Logistics & Transportation, Technology, Media & Telecom, Insurance, and Others, offering services such as application development, blockchain, AI, cybersecurity, cloud, enterprise automation, data management, and platform solutions under the Mphasis XaaP framework, catering to both sector-specific and cross-industry technology needs.
The company reported Q1FY26 revenue of Rs. 3,732 cr, up 9 percent YoY from Rs. 3,422 cr in Q1FY25 and up 0.6 percent QoQ from Rs. 3,710 cr in Q4FY25. Net profit for Q1FY26 stood at Rs. 442 cr, up 9 percent YoY from Rs. 405 cr in Q1FY25 but down 0.9 percent QoQ from Rs. 446 cr in Q4FY25.
At the moment, the company’s P/E ratio is 29.4x similar as compared to its industry P/E 29.3x. The company’s ROE and ROCE are 18.2 percent and 22.7 percent respectively, and the D/E ratio of 0.12, indicates the company’s financial performance.
Written by Akshay Sanghavi
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