Technology · NSE/BSE: MPHASIS

MphasiS Limited

Information Technology Services
Market Cap ₹0.44L Cr
Verdict: Average

Quality Scores

Multi-Bagger
62/100
Compounder Quality
74/100
Management Credibility
70/100
Governance
60/100
Cash Flow Quality
70/100

AI Summary

Mphasis Limited is a mid-tier IT services player with a strong focus on cloud and cognitive services, particularly in the banking and financial services (BFS) vertical. Historically an HP-subsidiary, it was acquired by Blackstone in 2016, leading to a significant shift in strategic direction and a reduction in dependence on legacy business. The company maintains a market capitalization of approximately ₹43,244 Cr and shows a consistent track record of double-digit dividend payouts. While financial growth has been moderate with a 10% 10-year revenue CAGR, the company has successfully expanded…

Top Opportunities

  • Consistent high dividend payout ratio (>60%)
  • Steady operating profit margins at 18-19%
  • Solid ROCE history consistently above 22%

Top Risks

  • Significant promoter stake reduction (Blackstone sell-down)
  • Recievable days/DSO doubled from 45 to 96 days
  • Stagnated sales growth over last 3 years (5% CAGR)

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