Shares of Mphasis touched 52-week high of Rs 1,121.90, adding 12.5 percent intraday Friday post company reported stellar numbers for the quarter ended March 2018.
The company registered 29 percent jump in its consolidated profit to Rs 237.67 crore in quarter ended March 31, 2018 against Rs 184 crore in the same quarter last fiscal.
The revenue from operations rose by 15.8 percent to Rs 1744.48 crore versus Rs 1505.93 crore.
Nitin Rakesh, Chief Executive Officer and Executive Director, Mphasis said, FY2018 has been a break-out year for Mphasis in terms of growth. Our efforts to leverage solution – led approach at scale is showing results. We have been able to partner with our clients in their digital transformation initiatives.
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The company board has considered and approved recommendation of dividend of Rs 20 per equity share of Rs 10 each for the financial year ended March 31, 2018.
The company unveiled its new logo and brand identity.
Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 920
Morgan Stanley has maintained overweight rating on Mphasis with a price target of Rs 920 per share.
The company has posted strong Q4FY18 results and there is a constructive outlook for FY19, said Morgan Stanley.
The strong growth was led by the HP/DXC channel and direct core and going ahead the direct core, HP/DXC channel are expected to grow above the industry average.
The company has raised its margin outlook to 15-17 percent from 14-16 percent, it added.
Brokerage: Macquarie | Rating: Neutral | Target: Rs 1040
Macquarie has maintained neutral rating on Mphasis with a target of Rs 1040.
According to Macquarie, the growth is picking up on back of deal wins.
It has raise FY19-20 EPS estimate by 5-7% on revenue growth visibility and timely deal execution can help the company to accelerate its dollar revenue growth.
The broking house expecting dollar revenue growth accelerating to 12.9% in FY19 from 9.8% in FY18.
At 10:25 hrs MphasiS was quoting at Rs 1,053.55, up Rs 55.85, or 5.60 percent on the BSE.
Posted by Rakesh Patil