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Mphasis Ltd

NSE: MPHASIS BSE: 526299

2376.70

(-2.43%)

Sun, 22 Feb 2026, 10:51 am

Mphasis Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are covered by earnings (1.8x coverage).
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
  • Mphasis's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Mphasis's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

future

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Pros

  • Performance (ROE) is expected to be above the current IN IT industry average.
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Cons

  • Cash flow for Mphasis is expected to increase but not above the 50% threshold in 2 years time.
  • Mphasis's earnings are expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).
  • Mphasis's earnings growth is positive but not above the India market average.
  • Mphasis's earnings growth is positive but not above the low risk savings rate of 7.2%.
  • Mphasis's earnings are expected to decrease over the next year.
  • Mphasis's earnings are expected to increase but not above the low risk growth rate in 3 years time
  • Mphasis's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Mphasis is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • A decline in Mphasis's performance (ROE) is expected over the next 3 years.
  • Mphasis's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Mphasis's revenue is expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).
  • Mphasis's revenue growth is positive but not above the India market average.

health

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Pros

  • Mphasis is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Mphasis is profitable, therefore cash runway is not a concern.
  • Mphasis is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (231.2%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 7.7x debt.
  • Mphasis's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (10.4% vs 9.8% today).
  • Interest payments on debt are well covered by earnings (EBIT is 17.5x coverage).
  • Mphasis's level of debt (9.8%) compared to net worth is satisfactory (less than 40%).
  • Low level of unsold assets.
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Cons

    management

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    Pros

    • The tenure for the Mphasis board of directors is about average.
    • The tenure for the Mphasis management team is about average.
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    Cons

    • Nitin's remuneration is higher than average for companies of similar size in India.
    • Nitin's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
    • Mphasis individual insiders have only sold shares in the past 3 months.

    past

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    Pros

    • Mphasis's year on year earnings growth rate has been positive over the past 5 years.
    • Mphasis used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
    • Mphasis has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
    • Mphasis has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
    • Mphasis's earnings growth has exceeded the IN IT industry average in the past year (10.4% vs 6%).
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    Cons

    • Mphasis's 1-year earnings growth is less than its 5-year average (10.4% vs 12.1%)

    value

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    Pros

    • 526299 matched the India Market (-14.5%) over the past year.
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    Cons

    • Mphasis's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Mphasis's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Mphasis is overvalued based on assets compared to the IN IT industry average.
    • Mphasis is poor value based on expected growth next year.
    • Mphasis is overvalued based on earnings compared to the IN IT industry average.
    • Mphasis is overvalued based on earnings compared to the India market.
    • 526299 underperformed the IT industry which returned -10.1% over the past year.
    • BSE:526299 is flat (-0.4%) underperforming the IT industry which returned 8.5% over the past month.
    • BSE:526299 is flat (-0.4%) underperforming the market in India which returned 8% over the past month.

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