Mphasis Ltd Share Price Target 2024, 2025 to 2030

Mphasis, a dynamic player in the Information Technology (IT) and Business Process Outsourcing (BPO) industry, renowned for its innovative solutions and robust domain expertise. Initially acquired by Electronic Data Systems Corporation in June 2006, Mphasis later became a subsidiary of Hewlett-Packard (HP) before being acquired by the global private equity firm, Blackstone Group, in September 2016.

Mphasis operates across various domains including banking, capital markets, communication, and insurance, offering a wide array of services such as application services, cloud, cybersecurity, and digital solutions. With a strong international presence spanning 19 countries and more than 60 sales and delivery centers, Mphasis caters to a diverse clientele, including top global banks, mortgage lenders, and insurance companies.

The company’s revenue is well-diversified across segments and geographies, with a significant portion derived from the American market. Notably, Mphasis has experienced steady growth in Total Contract Value (TCV) wins, particularly in New Gen areas and the AI vertical. Leveraging its association with Blackstone Group’s investment portfolio, Mphasis continues to explore new opportunities and expand its client base, positioning itself uniquely in the global IT services landscape.

In 2025, Mphasis is expected to witness a continued upward trend in its share prices. The maximum price is projected to rise gradually from ₹3,049.17 in January to ₹3,644.47 in December. Similarly, the minimum price is anticipated to show a consistent increase, starting from ₹2,345.51 in January and reaching ₹2,803.44 by December.

This trend suggests a positive outlook for investors, with both maximum and minimum prices expected to experience growth throughout the year. Overall, investors can anticipate a bullish trajectory for Mphasis shares in 2025, with prices expected to trend higher month by month.

Over the past five years, Mphasis has demonstrated consistent growth in its financial performance, reflecting its robust business operations and strategic initiatives. The company’s sales have shown a steady upward trend, increasing from ₹7,731 crores in March 2019 to ₹13,798 crores in March 2023. This indicates the company’s ability to generate higher revenues over time, driven by factors such as expanding client base and portfolio of services.

Additionally, the company has consistently generated supplementary income from other sources, such as investments or non-operating activities. This supplementary income has contributed positively to the overall profitability of the company.

However, Mphasis has witnessed an increase in interest expenses and depreciation over the years, which is reflective of its investment in infrastructure and technology to support business growth.

Despite the growth in sales, Mphasis has effectively managed its expenses, ensuring a balanced approach to cost management. Operating profit has also experienced a notable rise, reaching ₹2,434 crores in March 2023 from ₹1,324 crores in March 2019. The operating profit margin has been relatively stable around 18-19%, indicating efficiency in cost control and operational effectiveness.

Profit before tax has shown a consistent growth trajectory, reflecting the company’s ability to generate higher profits from its operations. Similarly, net profit has increased steadily, indicating the company’s ability to convert its sales into bottom-line earnings. The earnings per share (EPS) have also demonstrated a positive trend, reflecting shareholder value creation.

Although the dividend payout percentage fluctuated over the years, the company has maintained a reasonable dividend payout ratio, indicating a commitment to rewarding shareholders while retaining earnings for future growth initiatives. Overall, Mphasis’s financial performance over the past five years reflects its resilience, adaptability, and effective management strategies in navigating the dynamic business environment.

1. What is Mphasis Ltd’s current stock price and its change from the previous day’s close?
   • Mphasis Ltd’s current stock price is ₹2,389, with a decrease of -1.95% from the previous day’s close.
2. What is Mphasis Ltd’s market capitalization?
   • Mphasis Ltd’s market capitalization stands at ₹45,144 Cr.
3. What is the range of Mphasis Ltd’s high and low prices?
   • The high price for Mphasis Ltd’s stock is ₹2,838, while the low price is ₹1,660.
4. What is the stock P/E ratio for Mphasis Ltd?
   • The stock P/E ratio for Mphasis Ltd is 28.8.
5. What is the book value per share of Mphasis Ltd?
   • The book value per share of Mphasis Ltd is ₹419.
6. What is the dividend yield of Mphasis Ltd?
   • Mphasis Ltd has a dividend yield of 2.09%.
7. What is the Return on Capital Employed (ROCE) for Mphasis Ltd?
   • The Return on Capital Employed (ROCE) for Mphasis Ltd is 28.9%.
8. What is the Return on Equity (ROE) for Mphasis Ltd?
   • The Return on Equity (ROE) for Mphasis Ltd is 21.9%.

Mphasis Ltd, a global Information Technology (IT) solutions provider, has showcased a consistent financial performance over the last five years. From March 2019 to March 2023, the company witnessed steady growth in sales, increasing from ₹7,731 crores to ₹13,798 crores. Operating profit also saw a notable rise from ₹1,324 crores to ₹2,434 crores during the same period, maintaining an operating profit margin (OPM) of around 18%.

Despite fluctuations in quarterly results, Mphasis has shown resilience in its financial metrics. The company’s net profit has steadily increased from ₹1,073 crores in March 2019 to ₹1,638 crores in March 2023, with earnings per share (EPS) rising from ₹57.64 to ₹86.94. However, there was a slight decline in the trailing twelve months (TTM) sales, attributed to various factors impacting the IT sector.

Regarding shareholder returns, Mphasis has demonstrated a healthy dividend payout ratio averaging around 58% over the past five years, ensuring investor satisfaction. The company has maintained a stable ROCE and ROE, indicating efficient capital utilization and shareholder value creation.

Analyzing the balance sheet, Mphasis has managed its liabilities and assets effectively, with consistent growth in reserves and total assets. Additionally, the cash flows from operating activities have been positive, reflecting operational efficiency and robust cash generation capabilities.

Considering its financial performance and market position, investing in Mphasis can be an attractive opportunity for investors seeking exposure to the IT sector. With a strong track record of revenue growth, profitability, and dividend payouts, coupled with its strategic focus on next-generation technologies like cloud and cognitive services, Mphasis is well-positioned to capitalize on emerging market opportunities and deliver sustainable long-term returns for its shareholders. However, investors should conduct thorough due diligence and monitor market dynamics before making investment decisions.