NEW DELHI: Shares of Mphasis climbed 9 per cent in Friday's trade after the company reported better-than-expected profit for the September quarter. The technology company reported 4.9 per cent sequential growth in QoQ dollar revenues at $242 million, which beat the consensus estimates. This was the second consecutive quarter of 4 per cent plus growth for the IT firm on sequential basis. But target prices of a couple of brokerages suggests the stock hold limited to no upside going ahead.

On Friday, the stock climbed 9.34 per cent to hit a high of Rs 735 on BSE,

Emkay Global Financial Services said that the results were strong, both on growth as well as deal won basis, and may lead to some earnings upgrades.

The brokerage has 'accumulate' rating on the stock with a target price of Rs 725, valuing the firm at 13 times FY20E earnings.

Profit for the quarter rose 5.6 per cent QoQ, but was down on year-on-year basis. Operating margins during the quarter expanded by 64 basis points sequentially to 14.4 per cent, thanks to improved utilisation and better pricing realisations in onsite delivery, analysts said.

"While significantly lower QoQ, Q1FY18 was an exceptionally strong signings quarter; and this is only the second $100mplus total contract value (TCV) quarter after ever since the company has started reporting this metric," it said. The brokerage though has a target price of Rs610 on the stock, which is less than the prevailing market price," Motilal Oswal Securities said in another noted.

The brokerage has a target of Rs 610 on the stock which is at discount to the prevailing market prices.