See further downside in Mphasis: Nomura

See further downside in Mphasis, says Ashwin Mehta, IT Analyst, Nomura India.

Mehta told CNBC-TV18, "We remain skeptical in terms of Mphasis because what the management is talking about is 1-2% growth in 70% of their business which is HP and around 3-5% growth in terms of their remaining portion of business which is the direct business. So effectively the growth that they are guiding for materializes to a 3% growth in the current year and around 12% growth next year, which is actually lower than what people are building in. So there could be some further downsides in our view."
Mphasis trailing 12-month (TTM) EPS was at Rs 46.08 per share. (Jan, 2011). The stock's price-to-earnings (P/E) ratio was 9.19. The latest book value of the company is Rs 138.54 per share. At current value, the price-to-book value of the company was 3.06. The dividend yield of the company was 0.94%.