Dolat Capital is bullish on Mphasis has recommended buy rating on the stock with a target price of Rs 1150 in its research report dated May 28, 2019.
Dolat Capital's research report on Mphasis
MPHL reported a strong revenue, in line with our estimates, due to a healthy growth in the direct core channel. MPHL believes the direct core channel will grow more than the industry, given strong deal wins in the next gen services in FY20. The company expects growth in line with the industry in the HP/DXC channel, due to a large transformational deal. The company witnessed strong spending by banks in digital, rather than core IT spend, and is confident about strong growth in this vertical.
MPHL is currently trading at an inexpensive valuation of 15.5x/13.8x FY20E/FY21E earnings. We maintain our BUY rating, with a revised TP of ` 1,150 based on 17x one-year fwd. PER.
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