Mphasis Limited (IN:MPHASIS)
:MPHASIS
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Mphasis Limited
(MPHASIS)
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Rating:63Neutral
Price Target:
₹2,426.00
▼(-13.60% Downside)
Action:Downgraded
Date:05/01/26
Overall score is driven primarily by solid underlying financial performance, tempered by the recent cash flow deterioration. Technicals are mixed-to-weak versus key long-term moving averages, and valuation appears somewhat expensive despite a moderate dividend yield.
Positive Factors
Sustained Revenue Growth
Consistent multi-year top-line expansion (2021–2026, ~9.2% latest) indicates durable demand for Mphasis’s services and successful client retention. This trend supports predictable backlog conversion, long-term capacity planning, and continued investment in high-value digital offerings.
Negative Factors
Sharp Free Cash Flow Drop
A roughly 42% fall in free cash flow in 2026 materially weakens internal funding capacity, reducing flexibility to invest in strategic initiatives or absorb shocks. If persistent, weaker cash conversion raises refinancing risk and can force trade-offs between growth, dividends, or debt reduction.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Consistent multi-year top-line expansion (2021–2026, ~9.2% latest) indicates durable demand for Mphasis’s services and successful client retention. This trend supports predictable backlog conversion, long-term capacity planning, and continued investment in high-value digital offerings.
Read all positive factors
Mphasis Limited (MPHASIS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹424.99B
Dividend Yield1.94%
Average Volume (3M)15.07K
Price to Earnings (P/E)19.2
Beta (1Y)1.54
Revenue Growth11.59%
EPS Growth8.85%
CountryIN
Employees24,518
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)91.69
Shares Outstanding190,858,060
10 Day Avg. Volume21,232
30 Day Avg. Volume15,071
Financial Highlights & Ratios
PEG Ratio2.37
Price to Book (P/B)3.64
Price to Sales (P/S)2.46
P/FCF Ratio43.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹2,732.25Price Target Upside-2.69% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)114.16
Revenue Forecast (FY)₹181.19B
Mphasis Limited Business Overview & Revenue Model
Company Description
Mphasis Limited operates as an information technology solutions provider that specializes in cloud and cognitive services worldwide. The company operates through Banking and Financial Service; Logistics and transportation; Technology Media and Tel...
How the Company Makes Money
Mphasis makes money primarily by providing IT and business services to enterprise customers under contracted engagements. Its core revenue model is service-based: clients pay for (a) time-and-materials work where billing is tied to hours and staff...
Mphasis Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 145.40B | 158.80B | 142.30B | 132.79B | 137.98B | 119.61B |
| Gross Profit | 62.72B | 24.28B | 60.73B | 53.38B | 57.09B | 49.13B |
| EBITDA | 27.31B | 29.83B | 24.45B | 20.47B | 22.45B | 19.46B |
| Net Income | 17.39B | 18.63B | 17.02B | 15.55B | 16.38B | 14.31B |
Balance Sheet | ||||||
| Total Assets | 163.63B | 177.82B | 149.07B | 141.30B | 116.09B | 107.56B |
| Cash, Cash Equivalents and Short-Term Investments | 35.98B | 30.74B | 33.97B | 34.10B | 24.22B | 23.89B |
| Total Debt | 19.83B | 26.20B | 18.88B | 23.89B | 10.53B | 12.52B |
| Total Liabilities | 61.69B | 70.38B | 52.78B | 53.36B | 36.75B | 38.13B |
| Stockholders Equity | 101.94B | 107.44B | 96.28B | 87.95B | 79.35B | 69.43B |
Cash Flow | ||||||
| Free Cash Flow | 15.57B | 9.00B | 18.43B | 20.86B | 13.49B | 15.96B |
| Operating Cash Flow | 15.98B | 12.18B | 19.05B | 21.80B | 14.62B | 17.16B |
| Investing Cash Flow | 2.54B | -3.08B | 440.58M | -24.82B | 1.82B | -2.82B |
| Financing Cash Flow | -16.34B | -8.11B | -17.56B | 770.75M | -14.40B | -13.89B |
Mphasis Limited Technical Analysis
Neutral
2807.75
Price Trends
2218.96
Positive
2450.66
Negative
2625.72
Negative
Market Momentum
-35.99
Positive
49.93
Neutral
40.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MPHASIS, the sentiment is Neutral. The current price of 2807.75 is above the 20-day moving average (MA) of 2222.12, above the 50-day MA of 2218.96, and above the 200-day MA of 2625.72, indicating a neutral trend. The MACD of -35.99 indicates Positive momentum. The RSI at 49.93 is Neutral, neither overbought nor oversold. The STOCH value of 40.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:MPHASIS.
Mphasis Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ₹8.42T | 15.55 | ― | 3.55% | 4.58% | 1.35% | |
70 Outperform | ₹3.17T | 20.22 | ― | 2.86% | 11.18% | -4.28% | |
69 Neutral | ₹4.85T | 14.83 | ― | 2.70% | 9.61% | 11.08% | |
67 Neutral | ₹1.23T | 21.36 | ― | 1.08% | 11.31% | 9.00% | |
65 Neutral | ₹1.41T | 22.66 | ― | 2.76% | 7.22% | 12.99% | |
63 Neutral | ₹424.99B | 19.20 | ― | 1.94% | 11.59% | 8.85% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
IN:MPHASIS
Mphasis Limited
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-11.18%
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Mphasis Limited Corporate Events
Mphasis Clears FY26 Results, Proposes Rs 62 Dividend and Renews Top Leadership
Apr 29, 2026
Mphasis Limited’s board has approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, with statutory auditors issuing unmodified opinions, and confirmed that the company does not qualif...
Mphasis Releases Investor Presentation Ahead of FY26 Results Call
Apr 29, 2026
Mphasis Limited has notified the stock exchanges that it has prepared an investor and analyst presentation tied to its financial results for the quarter and full year ended 31 March 2026. The materials, to be discussed on a scheduled call on 30 Ap...
Mphasis Clears FY26 Results, Declares ₹62 Dividend and Confirms CEO Re-appointment
Apr 29, 2026
Mphasis Limited’s board has approved the audited standalone and consolidated financial results for the quarter and financial year ended 31 March 2026, with statutory auditors issuing unmodified opinions, and confirmed that the company does n...
Mphasis Approves FY26 Results, Dividend, and Leadership Reappointments
Apr 29, 2026
Mphasis Limited’s board has approved the audited standalone and consolidated financial results for the quarter and financial year ended 31 March 2026, with the statutory auditors issuing unmodified opinions, and confirmed that the company do...
Mphasis Board Clears FY26 Results, Strong Dividend and Leadership Reappointments
Apr 29, 2026
Mphasis Limited’s board has approved the audited standalone and consolidated financial results for the quarter and year ended 31 March 2026, with the statutory auditors issuing unmodified opinions, underscoring the company’s financial ...
Mphasis Names Richard Miller Global Head of Insurance Business
Apr 28, 2026
Mphasis Limited has appointed Richard Miller as Executive Vice President and Global Head of its Insurance Business, effective April 27, 2026, strengthening leadership in a key vertical for the technology services provider. The move underscores the...
Mphasis disputes ₹151.73 crore income tax demand on overseas TDS
Mar 30, 2026
Mphasis Limited has disclosed that it received an income tax order and a demand notice totaling ₹151.73 crore for assessment year 2020-21, arising from alleged short deduction of tax at source on overseas payments to foreign associated enter...
Mphasis Board Defends Governance Compliance After SEBI Non-Compliance Notice
Mar 28, 2026
Mphasis Limited’s board has responded to stock exchange notices alleging non-compliance with Regulation 17(1) of SEBI’s Listing Obligations and Disclosure Requirements for the quarter ended December 31, 2025. The company explained that...
Mphasis faces Rs 2,286.86 crore tax demand, plans legal challenge
Mar 26, 2026
Mphasis Limited has disclosed that it received an income-tax assessment order for Assessment Year 2023-24, along with a demand notice of Rs 2,286.86 crore from the Income Tax Department’s Assessment Unit. The order cites additions to taxable...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.