Buy Mphasis, target price Rs 990: Investec

Investec has maintained buy rating on Mphasis and cut target price to Rs 990 from Rs 1,130. The stock ended down 0.56 per cent at Rs 672.05 while the BSE sensex closed 674.36 points down (-2.39 per cent) on Friday.

MphasiS Ltd., incorporated in 1992, has a market cap of Rs 12536.14 crore.

Investment Rationale

Mphasis has not seen any specific impact in the near term from the Covid-19 crisis, said Investec. The brokerage has cut FY21 and FY22 EPS estimates by 14.7 per cent and 15.8 per cent respectively, saying that potential impact from the crisis is imminent.

Financials

Mphasis' key products/revenue segments include Computer Software which contributed Rs 3434.02 crore to sales value (100.00 per cent of total sales)for the year ending March 31, 2019.

For the quarter ended December 31, 2019, the company reported consolidated sales of Rs 2276.72 crore, up 5.50 per cent from last quarter sales of Rs 2158.11 crore and up 15.51 per cent from last year same quarter sales of Rs 1970.96 crore. The company reported net profit after tax of Rs 293.60 crore in the latest quarter.