Rs 777 to Rs 2639: This Bangalore-based IT company has delivered over 200% returns in the last two years!

resr 5paisa Research Team 10th May 2022 - 02:40 pm
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These returns are nearly three times the returns delivered by the S&P BSE 500 index, of which the company is a part.

Mphasis Ltd, an S&P BSE 500 company, has delivered multibagger returns to its shareholders in the last two years. During this period, the company’s share price jumped from Rs 777.1 on 11 May 2020 to Rs 2639.7 on 9 May 2022, an increase of 240% in the two-year holding period. An investment of Rs 1 lakh in this stock two years ago would have turned to Rs 3.4 lakh today.

Established in June 2020, Mphasis Ltd is headquartered in Bangalore. The company provides infrastructure technology and applications outsourcing services, as well as architecture guidance, application development and integration, and application management services. It caters to the requirements of various industries such as financial services, telecom, logistics, and technology industries.

In the recent quarter Q4FY22, on a consolidated basis, the company’s net revenue increased by 29.85% YoY to Rs 3277.67 crore. Similarly, the bottom line increased by 23.71% YoY to Rs 392.07 crore.

During the quarter, the company won a deal from one of the leading insurance brokers in the UK, to accelerate cloud adoption for their IT operations and migrate current entities to a cloud environment. Similarly, one of the leading providers of benefits administration and cloud-based HR and finance solutions collaborated with the company to extend infrastructure support, service desk support and desk side support services for one of its recent acquisitions.

The company is currently trading at a TTM PE of 34.66x, as against the industry PE of 28.76x. In FY22, the company delivered an ROE & ROCE of 28.77% and 36.11%, respectively.

At 2.10 pm, the shares of Mphasis Ltd were trading at Rs 2649.15, an increase of 0.36% from the previous day’s closing price of Rs 2639.7 on BSE. The stock has a 52-week high & low of Rs 3,659.75 and Rs 1,729.15, respectively on BSE.

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