MphasiS Ltd.
NSE: MPHASISMphasiS Ltd.: A 30-second snapshot
Mphasis (₹2,310.5) is a mid-sized IT services company with 5-year revenue and earnings growth each at 14%, ROE of 18.29%, and a 2.73% dividend yield. The stock trades at a trailing PE of 24.51x, above most large-cap IT peers, while sitting 11.3% below its 200-DMA and 23.93% below its 52-week high. Recent news flow centres on an AI platform launch and a Blackstone share-pledge to refinance $700M in debt.
P/E
24.5
Forward P/E
18.1
ROE
+18.3%
Debt / Equity
24.38
Profit Margin
+11.7%
Div. Yield
+2.7%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
63/100
News
8 headlines · 4 positive · 3 negative
Mphasis To Ride AI Wave With New Platform 'Trai', Unveils Two New Product Lines - NDTV Profit
NDTV Profit
Blackstone pledges all its Mphasis shares to raise $700 million and refinance loan - Mint
Mint
Buy Mphasis Ltd for Target Rs 2,845 by Elara Capital - Investment Guru
Investment Guru
Mphasis board sets AI-era goals: have ample cash, be future-proof - Mint
Mint
Mphasis bets on outcome-based deals; invests 1.5% of revenue into enterprise AI 'agency' platform - Moneycontrol.com
Moneycontrol.com
Recent context
- ·Mphasis launched 'Trai', an enterprise AI agency platform, and announced two new product lines at a May 2026 analyst event, positioning 1.5% of revenue as ongoing AI investment (NDTV Profit, Moneycontrol, May 27).
- ·Blackstone pledged all its Mphasis shares to refinance a $700M loan (Mint, May 20); this event coincides with the stock's 3-month period of price weakness, though causal linkage is not established by available data.
- ·Mean analyst rating of 1.806 across 36 analysts (1–5 scale, lower = more constructive) reflects a coverage base that is skewed toward the constructive end of the scale numerically, though price action over the past year has not yet reflected that positioning.
Strengths
- +Five-year revenue growth of 14.4% and earnings growth of 14% demonstrate consistent top- and bottom-line expansion over the measurement window.
- +FCF was positive in 4 of the available years, and the board declared a ₹62 final dividend for FY26 alongside Q4 results.
- +Forward PE of 18.15x represents a 26% compression relative to the trailing PE of 24.51x, indicating analyst consensus expects meaningful earnings expansion in the near term.
- +Quality score of 52 ranks 3rd of 6 IT peers, ahead of HCLTECH (40), TECHM (46), and WIPRO (46), placing MPHASIS in the upper half of the peer group on composite quality metrics.
Weaknesses
- −Price has declined 7.14% over 12 months and remains 11.3% below the 200-DMA (₹2,605.10), indicating sustained underperformance relative to the stock's own longer-term price trend.
- −Reported D/E of 24.38 is rising and significantly above IT sector norms; regardless of lease-liability contribution, the figure flags a balance-sheet structure that is more leveraged than the large-cap peer group.
- −ROE of 18.29% ranks 4th of 6 IT peers, trailing HCLTECH (23.36%), INFY (31.44%), and TCS (48.40%) — while positive in absolute terms, capital efficiency is below the sector leaders at a premium valuation.
- −Blackstone pledged its entire MPHASIS holding to raise $700M in a loan refinancing, creating a promoter-level financing overhang whose resolution terms remain publicly undisclosed.
Open questions
- ?Does the D/E of 24.38 primarily reflect operating lease capitalization under Ind AS 116, or does it include material financial debt — and how does the net debt position compare to peers after adjusting for cash?
- ?Is the 26% gap between trailing PE (24.51x) and forward PE (18.15x) supported by specific contract wins or pipeline disclosures, or does it rely on broad macro assumptions about IT spending recovery?
- ?How has Blackstone's share-pledge and refinancing activity historically affected MPHASIS's operational independence and strategic decision-making, given their significant ownership?
- ?Does the 'Trai' AI platform represent a structural shift in MPHASIS's revenue mix toward higher-margin outcomes-based contracts, or is it primarily a repositioning of existing service lines?
Peer comparison: IT
Ranks 3 of 6 on qualityTechnical state
Current price
₹2,310.50
SMA 50
₹2,231.09
SMA 200
₹2,605.10
RSI (14)
59.2 (neutral)
From 52w high
-23.9%
1Y return
-7.1%
3M return
+2.3%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumPrice at ₹2,310.5 is 11.3% below the 200-DMA (₹2,605.10) and has declined 7.14% over 12 months, with a 23.93% drawdown from the 52-week high. The stock has recovered above the 50-DMA (₹2,231.09) over the past 3 months (+2.34%), but remains in a longer-term downtrend relative to its annual moving average.
- mediumReported debt-to-equity of 24.38 is classified as rising over the available history. While IT services companies often carry operating lease liabilities that inflate this ratio, the figure stands well above typical peers in the sector and warrants review of the financing and lease structure in company filings.
- mediumMPHASIS trades at a PE of 24.51x, ranking 5th of 6 IT peers on this metric — higher than HCLTECH (19.49x), INFY (15.55x), TCS (16.89x), and WIPRO (16.43x). ROE of 18.29% ranks 4th of 6, trailing HCLTECH (23.36%), INFY (31.44%), and TCS (48.40%). The stock carries a premium valuation relative to peers with materially higher capital efficiency.
- lowBlackstone pledged its entire MPHASIS shareholding to raise $700M and refinance an existing loan (Mint, May 20). This creates a promoter-level financing overhang; resolution timeline and terms have not been publicly detailed in subsequent news coverage.
Cross-section contradictions
- Five-year revenue growth of 14.4% and earnings growth of 14% with FCF positive in 4 of available years contrast with a 7.14% price decline over 12 months and a 23.93% drawdown from the 52-week high — price performance has diverged materially from the underlying multi-year operating trajectory.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days