IT Software Sector Midcap Stock To Buy For 20% Gains, Trading Near 52-Week Low: Hem Securities

Broking firm Hem Securities has come up with a "buy" on Mphasis Ltd. with a target price of Rs 2,032 apiece. The stock has recently hit the new 52 week low, if you buy the stock at the current market price, it can fetch a return of up to 20%. Mphasis is an IT software sector midcap stock with a market valuation of Rs 32,357.70 Crore. Check below to know more:

Mphasis' Stock Performance & Outlook

The stock of Mphasis last traded at Rs 1,718.20 apiece, up 2.94% from the previous close of Rs 1,669.10 apiece. It hit the 52 week low on 28 March 2023 at Rs 1,661.20 apiece, currently trading nearly 3.43% up its 52 week low. While, its 52 week high is Rs 3,465.80 apiece, recorded on 31 March 2022.

The stock has fallen 4.51% in 1 week. It has fallen 15.58% in the last 1 month, and 11.05% in the past 3 months, respectively. In the last 1 year, the stock has fallen 49.4%. It has given a strong 150.36% positive return in the past 3 years and 105.1% in the past 5 years.

Result Overview

• Mphasis Ltd Q3 FY23 consolidated revenues came in at ₹3506.21 Cr, up 12.2% YoY and down -0.4% QoQ.
• Op Profit for Q3FY23 stood at ₹617.5 Cr, up 11.6% YoY and flat QoQ.
• Op margins for Q3FY23 came at 17.61%, -10bps YoY and +6 bps QoQ.
• PAT for Q3FY23 stood at ₹412.27 Cr, up 15.3% YoY and down 1.5% QoQ.

Buy the stock for a target price of Rs 2,032 apiece

According to Hem Securities, Co. revenue growth was weaker led by furloughs, delayed ramp up in deals and fall in mortgage business. But the TCV deal wins are healthy and management is confident of improving margins and achieving good revenue growth in medium to long term. "Recent correction gives a very good opportunity to add the stock for attractive gains We initiate a "BUY" rating on the stock and value the stock at 20x FY24E earnings to arrive at the target of ₹2032," the brokerage has said.

Disclaimer - The stock has been picked from the brokerage report of Hem Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.