Analysts Have Made A Financial Statement On Mphasis Limited's (NSE:MPHASIS) Second-Quarter Report
Mphasis Limited (NSE:MPHASIS) came out with its second-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. The result was positive overall - although revenues of ₹46b were in line with what the analysts predicted, Mphasis surprised by delivering a statutory profit of ₹29.34 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Mphasis from 32 analysts is for revenues of ₹185.9b in 2027. If met, it would imply a decent 8.0% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 8.3% to ₹114. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹184.6b and earnings per share (EPS) of ₹113 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Check out our latest analysis for Mphasis
There were no changes to revenue or earnings estimates or the price target of ₹2,702, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Mphasis, with the most bullish analyst valuing it at ₹3,189 and the most bearish at ₹1,764 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Mphasis' rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 6.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Mphasis to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹2,702, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Mphasis. Long-term earnings power is much more important than next year's profits. We have forecasts for Mphasis going out to 2029, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Mphasis .
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