Mphasis (MPHASIS)

FairStock Score: 57/100 — STEADY

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear Buffett-Graham glasses, so I ask: is this business wonderful, and is the price sensible? Mphasis shows a steady IT services profile. Return on equity of 17.74% and ROCE of 22.71% are respectable, debt/equity of 0.25 is comfortable, and free cash flow of ₹1,937 Cr proves the business converts profits into cash. Piotroski F-Score 8/9 and Altman Z-Score 4.11 suggest balance-sheet strength. Latest quarter sales ₹4,003 Cr and net profit ₹442 Cr, with sales growth 17.50% and profit growth 10.70%. But 5-year revenue CAGR is only 9.98%, so growth is solid, not explosive. Promoter holding 30.59% and dividend yield 2.44% are reasonable, though not controlling. The trouble is price. At ₹2545, P/E 25.44, P/B 4.28, and PEG 3.28, I am not getting a bargain. Graham Number is ₹1040.53, so margin of safety is -120.71%. DCF intrinsic value is ₹1811.67, meaning the market price is about 40% above that estimate. EV/EBITDA of -1.72 is unusual and I would not treat it as a value signal. FairStock Score 57/100 says STEADY, not screaming cheap. So I see a quality-ish stalwart, but not a wide-moat bargain. The business earns good returns and has low debt, yet growth is modest and valuation assumes more. As Graham would say, price is what you pay, value is what you get. At ₹2545, I want a wider discount before calling it a buy. I would watch FCF, ROE/ROCE, profit growth catching up with sales growth, and the gap to DCF and Graham Number. For now, it is a watchlist candidate, not a margin-of-safety purchase.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer