Mphasis Limited (MPHASIS) AI Stock Analysis

• Market Cap: ₹502.81B
• Dividend Yield: 2.16%
• Average Volume (3M): 15.45K
• Price to Earnings (P/E): 28.8
• Beta (1Y): 1.75
• Revenue Growth: 8.11%
• EPS Growth: 10.73%
• Country: IN
• Employees: 24,518
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 23.14
• Shares Outstanding: 190,261,020
• 10 Day Avg. Volume: 14,008
• 30 Day Avg. Volume: 15,448
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹2,987.08
• Price Target Upside: 13.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 66 Neutral
• Price Target: ₹2,934.00 ▲(11.02% Upside)

Mphasis Limited's strong financial performance is the most significant factor, supported by high profitability and a solid balance sheet. However, technical analysis indicates bearish momentum, which negatively impacts the score. The valuation suggests the stock may be overvalued, but the dividend yield offers some compensation. The absence of earnings call data and corporate events means these factors do not influence the score.

Mphasis Limited Business Overview & Revenue Model

Company Description

Mphasis Limited is a leading global technology services and solutions provider specializing in cloud and cognitive services. The company operates across multiple sectors, including banking and financial services, insurance, technology, and healthcare. Mphasis leverages its deep domain expertise to deliver comprehensive solutions that address complex business challenges, enabling its clients to enhance their competitive advantage through technological innovation.

How the Company Makes Money

Mphasis Limited generates revenue primarily through its IT services and solutions offerings. The company's revenue model is centered around providing customized IT services, including application development, infrastructure outsourcing, and business process outsourcing (BPO) services. Key revenue streams include long-term contracts with large enterprises in sectors like banking, financial services, insurance, and retail. Mphasis also partners with major technology providers and leverages its strategic partnerships to enhance its service offerings and expand its market reach. The company's focus on digital transformation, cloud migration, and cognitive services has also contributed significantly to its earnings, aligning with the growing demand for advanced technology solutions.

Mphasis Limited Financial Statement Overview

Summary

Mphasis Limited demonstrates strong financial health with high profitability and efficient operations. The income statement shows notable revenue growth and robust profit margins. The balance sheet reflects low leverage and a strong equity base, while cash flow metrics indicate good cash management despite a slight decline in free cash flow.

Income Statement

The income statement displays strong performance with a notable revenue growth rate of 7.17% from 2024 to 2025. Gross profit margin is high at 42.76%, and the net profit margin is robust at 11.96%. EBIT margin is a remarkable 42.76%, indicating efficient operations. These metrics suggest strong profitability and efficient cost management, though the growth in EBITDA margin could be a focus area for improvement.

Balance Sheet

The balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.20, indicating low leverage. The equity ratio is 64.58%, showing a strong reliance on equity financing. Return on equity is relatively good at 17.68%, pointing to effective use of shareholders' funds. The company's low debt levels and solid equity base contribute to financial stability, although more aggressive growth could be pursued leveraging this position.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow, with a reduction from 2024 to 2025. However, the company has a strong free cash flow to net income ratio of 1.08, and a high operating cash flow to net income ratio of 1.12, reflecting strong cash generation relative to earnings. Despite the decrease in free cash flow growth, the company maintains robust cash flow metrics, indicating good cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	142.30B	142.30B	132.79B	137.98B	119.61B	97.22B
Gross Profit	60.85B	60.85B	38.70B	57.23B	50.90B	28.77B
EBITDA	27.68B	26.47B	26.40B	25.96B	22.78B	19.34B
Net Income	17.02B	17.02B	15.55B	16.38B	14.31B	12.17B
Balance Sheet
Total Assets	149.07B	149.07B	141.30B	116.09B	107.56B	93.99B
Cash, Cash Equivalents and Short-Term Investments	33.97B	33.97B	34.10B	24.22B	23.89B	26.39B
Total Debt	18.88B	18.88B	23.89B	10.53B	12.52B	11.81B
Total Liabilities	52.78B	52.78B	53.36B	36.75B	38.13B	28.72B
Stockholders Equity	96.28B	96.28B	87.95B	79.35B	69.43B	65.27B
Cash Flow
Free Cash Flow	18.43B	18.43B	20.86B	13.49B	15.96B	13.28B
Operating Cash Flow	19.05B	19.05B	21.80B	14.62B	17.16B	14.55B
Investing Cash Flow	440.58M	440.58M	-24.82B	1.82B	-2.82B	-8.22B
Financing Cash Flow	-17.56B	-17.56B	770.75M	-14.40B	-13.89B	-8.61B

Mphasis Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2642.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MPHASIS, the sentiment is Negative. The current price of 2642.75 is below the 20-day moving average (MA) of 2869.55, below the 50-day MA of 2803.32, and below the 200-day MA of 2649.36, indicating a bearish trend. The MACD of -16.87 indicates Positive momentum. The RSI at 34.30 is Neutral, neither overbought nor oversold. The STOCH value of 7.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MPHASIS.

Mphasis Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KPITTECH	71 Outperform	₹332.43B	40.80	―	0.70%	17.09%	21.20%
COFORGE	68 Neutral	₹515.02B	51.63	12.73%	1.00%	44.02%	18.92%
MPHASIS	66 Neutral	₹502.81B	28.82	―	2.16%	8.11%	10.73%
TATAELXSI	65 Neutral	₹330.21B	44.30	27.44%	1.42%	1.83%	-5.37%
TEJASNET	64 Neutral	₹104.13B	56.56	11.61%	0.42%	100.45%	6.29%
LTTS	61 Neutral	₹430.39B	33.89	20.83%	1.35%	12.91%	-2.97%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Mphasis Limited Corporate Events

Mphasis Limited Announces Exercise of Stock Options and RSUs

Mphasis Limited has announced the exercise of 145,180 Employee Stock Options (ESOPs) and 2,327 Restricted Stock Units (RSUs) as part of its Employee Stock Options Plan 2016 and RSU Plan 2021. The exercise of these options reflects the company’s ongoing commitment to employee incentives and aligns with shareholder-approved schemes to manage the financial aspects of these exercises, including the deduction of shares to cover exercise prices and taxes. This move is likely to impact the company’s financial structure and employee engagement positively.