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Buy Mphasis; target of Rs 3008: Anand Rathi

Published on 29/04/2025 12:19 PM

Anand Rathi's research report on Mphasis

Mphasis demonstrated strong financial performance, with 2.9% q/q, 5.4% y/y revenue growth in CC, driven by significant contribution from the BFS sector (50% of revenue) and a sharp rebound in the Technology, Media & Telecommunications segment (18% of revenue). The company has a robust deal momentum, with healthy TCV of $390m, the highest in the past seven quarters, with the total at $1.27bn in FY25, indicating strong revenue potential. Its focus on AI-led transformation and modernization led to substantial pipeline growth, with 65% of the pipeline being AI-led and significant traction in large deals.

Outlook

We project 8.3%/14.2% USD revenue/EPS CAGRs over FY25-27, with the EBIT margin expanding to 16.2% by FY27 (vs. 15.2% in FY25). The stock trades at a FY26e/27e P/E of 25.8x/21.7x, respectively. No material change in estimates.

For all recommendations report, click here

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Mphasis - 29042025 - anand

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