Buy Mphasis; target of Rs 3400: Motilal Oswal

Motilal Oswal is bullish on Mphasis recommended buy rating on the stock with a target price of Rs 3400 in its research report dated February 23, 2026.

Broker Research

February 24, 2026 / 10:57 IST

buy

Motilal Oswal's research report on Mphasis

We met with the CFO of Mphasis to discuss AI, demand trends, large deals, and the balance sheet. Management’s key message was that the current AI debate is running ahead of business reality. While AI is expected to change service delivery over time, it could also create new opportunities across enterprise IT services. We believe scaling AI in large enterprises typically requires cleaning up legacy systems, simplifying architectures, and improving data readiness. The company highlighted that demand conditions remain stable, supported by continued large-deal activity. Over the last four quarters, it has secured ~USD2bn of TCV wins, with recent deal conversions expected to support near-term growth. That said, concerns around terminal value and AI-led disruption may restrict near-term multiple re-rating.

Outlook

We value the stock at 26x FY28E EPS, arriving at a TP of INR3,400. We reiterate our BUY rating on the stock.

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