MphasiS Ltd.
IT · NSE
52-week range
₹2,013 – ₹3,037
From 52w high
-27.1%
RSI (14)
44.3
vs SMA 50 / 200
↓ 50 · ↓ 200
Mphasis (NSE: MPHASIS) is a mid-cap IT services company currently trading at ₹2,214, 27.1% below its 52-week high and below both its 50-DMA (₹2,233) and 200-DMA (₹2,643). The company reported trailing PE of 23.5x with a forward PE of 17.4x, ROE of 18.3%, and a 5-year revenue CAGR of 14.4%, while carrying an elevated debt-to-equity of 24.38 on a rising debt trend.
- ✓5-year revenue CAGR of 14.4% and earnings CAGR of 14.0% demonstrate sustained top- and bottom-line compounding over the measured period.
- ✓ROE exceeded 15% in 4 of the available years and FCF was positive in 4 of the available years, indicating a track record of capital efficiency and cash generation.
- ✓Dividend yield of 2.8% with a Q4 FY26 final dividend of ₹62 recommended by the board, indicating continued capital return to shareholders.
- ✓Mean analyst rating of 1.8 across 36 analysts (1–5 scale, lower = more constructive), with forward PE compressing to 17.4x from a trailing 23.5x, reflecting earnings growth expectations embedded in consensus estimates.
- ✗Price is below both the 50-DMA (₹2,233) and 200-DMA (₹2,643), with a 16.4% decline over the past 3 months and a 27.1% drawdown from the 52-week high.
- ✗Debt-to-equity of 24.38 is elevated relative to IT peers and the debt trend is rising, which contrasts with the asset-light model typical of large-cap IT services companies.
- ✗MPHASIS ranks 5th of 6 on PE and 4th of 6 on ROE within its peer group; TCS and Infosys show ROEs of 48.4% and 31.4% respectively versus MPHASIS at 18.3%.
- ✗Quality score of 52 and consistency score of 59 place the company in the mid-range of its sector peer set, with no standout advantage on composite quality metrics.
- ·Q4 FY26 results were reported on April 30; the board recommended a final dividend of ₹62, and shares gained on the day of the announcement.
- ·Mphasis completed the acquisition of Theory and Practice Business Intelligence Inc. in April 2026, described as strengthening its 'Decisioning Intelligence' capabilities.
- ·A US court lawsuit filed by Mphasis against Coforge over employee hiring and client-exposure claims introduces legal uncertainty; no financial quantum has been disclosed.
- ?Does the elevated debt-to-equity of 24.38 reflect a deliberate acquisition-financing strategy, and how does the debt service compare to the company's FCF generation over the past 5 years?
- ?To what extent is the 14.4% 5-year revenue CAGR driven by the BFS (banking and financial services) vertical concentration, and how does that exposure shape the risk profile in different macro environments?
- ?The forward PE of 17.4x implies meaningful earnings growth — what are the key operational assumptions underpinning that compression, and how sensitive are they to client-spending cycles in the US and Europe?
- ?Does the 27.1% drawdown from the 52-week high reflect sector-wide IT de-rating, company-specific headwinds, or a combination — and how has MPHASIS performed relative to the Nifty IT index over the same period?
PE
23.5
Forward PE
17.4
ROE
+18.3%
Profit margin
+11.7%
D/E
24.38
Dividend yield
+2.8%
Quality score
52/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
4/5 yrs
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.Analysis generated 11 May 2026.