Mphasis: Does the price correction present an opportunity?

Uncertainty in IT spending, especially in the BFSI segment, significantly limits possible upside to the stock

Nitin Sharma
April 10, 2023 / 11:11 AM IST
Mphasis: Does the price correction present an opportunity?

Mphasis has been facing headwinds as the underlying mortgage business has seen an 80 percent year-on-year (YoY) volume decline.

PRO Only Highlights
-  Quarterly performance largely backed by improved realisations
-  Medium-term triggers China plus and protectionist measures for tyre industry
-  Valuations not inexpensive; but improved medium-term outlook

Highlights  Stock price corrected YTD by 9 percent Exposure to the BFSI segment is 62 percent Bulk of revenue comes from the US Stock is trading at 18.4x, below 5-year average forward PE The volatility in the Indian IT sector continues with the Nifty IT index shedding 26 percent year to date. Among the IT stocks, Mphasis, the mid-tier player, has suffered a double blow. This is because of the fear of a slowdown in IT spending and the collapse of SVB Bank as Mphasis...