INDUSTRY IT CMP (as on 25 Jan 2019) Rs 921 Target Price Rs 1,390 Nifty 10,781 Sensex 36,026 KEY STOCK DATA Bloomberg MPHL IN No. of Shares (mn) 193 MCap (Rs bn) / ($ mn) 178/2,502 6m avg traded value (Rs mn) 488 STOCK PERFORMANCE (%) 52 Week high / low Rs 1,279/795 3M 6M 12M Absolute (%) (5.3) (21.6) 11.8 Relative (%) (12.2) (19.4) 11.9 SHAREHOLDING PATTERN (%) Promoters 52.29 FIs & Local MFs 8.21 FPIs 28.93 Public & Others 10.57 Source : BSE Apurva Prasad apurva.prasad@hdfcsec.com +91-22-6171-7327 Amit Chandra amit.chandra@hdfcsec.com +91-22-6171-7345 Akshay Ramnani akshay.ramnani@hdfcsec.com +91-22-6171-7334 Growth drivers intact Mphasis posted in-line revenue and operating performance led by strong growth in Direct Core and HP-DXC channel. Revenue came at USD 283mn, 3.1/14.0% QoQ/YoY CC with stellar growth in Direct Core (56% of rev and 6% QoQ CC) and HP-DXC channel (29% of rev and 6.4% QoQ CC), offset by steep decline in Digital Risk. 9MFY19 growth in Direct core/hp-dxc channel at 15/24% YoY. EBIT% stood at 15.8%, -65bps QoQ impacted by lower gross margin (wage increase impact). APAT came at Rs 2.78bn, 2.6% QoQ supported by lower ETR. We maintain positive outlook on Mphasis based on, (1) Growth acceleration in Direct Core (highest ever sequential growth) supported by strong new client addition (including Blackstone portfolio), (2) Strategic partnership with DXC driving growth with core system transformation and cloud migration projects (currently <10% share of the USD 3.5bn addressable spend) and no negative impact seen from Luxoft, and (3) Continued improvement in RESULTS REVIEW 3QFY19 25 JAN 2019 Mphasis BUY operating efficiencies (G&A, pyramid rationalisation, utilisation) to improve profitability. Expect rev/eps CAGR at 13/18% over FY19-21E supported by Direct Core at 15% CAGR and HP-DXC channel at 13% CAGR. Factored EBIT margin at 16.3%, 17.1% and 18.2% for FY19/20/21E. Maintain BUY with TP of Rs 1,390, 18x Dec-20E EPS. Highlights of the quarter Deal TCV in 3Q was soft at USD 122mn (81% in Digital/NewGen), -6% YoY however, YTD TCV growth at 11.2% YoY. Among verticals, Insurance and Emerging industries led the growth, service-lines growth was driven by ADM (Stelligent consolidation) and geo-growth led by EMEA/RoW. Strong growth in top-5 accounts and strongest new client addition in over 5 years led by Direct core. Near-term outlook: Continuity in growth momentum and margin improvement can drive valuations higher (currently at 13.5x FY20, below midcap avg). Financial Summary YE March (Rs bn) 3QFY19 3QFY18 YoY (%) 2QFY19 QoQ (%) FY17 FY18 FY19E FY20E FY21E Net Sales 19.71 16.61 18.7 19.15 2.9 60.76 65.46 77.91 91.89 102.03 EBITDA 3.31 2.74 20.6 3.33 (0.7) 9.69 10.63 13.49 16.78 19.58 APAT 2.78 2.10 32.3 2.71 2.6 8.07 8.46 10.81 12.69 15.16 Diluted EPS (Rs) 14.9 11.3 32.3 14.6 2.6 43.3 45.4 58.1 68.2 81.5 P/E (x) 21.2 20.3 15.9 13.5 11.3 EV / EBITDA (x) 14.5 14.0 11.4 8.9 7.2 RoE (%) 13.4 14.6 20.5 23.3 24.1 Source: Company, HDFC sec Inst Research # Consolidated HDFC securities Institutional Research is also available on Bloomberg HSLB <GO>& Thomson Reuters
Revenue came at USD 283mn, 3.1/14% QoQ/YoY in CC terms with 0.5% QoQ impact from Stelligent acquisition Deal TCV in Direct International business stood at USD 122mn with 81% of TCV in digital-focus/newgen areas EBIT margin declined 65bps QoQ impacted by headwinds of salary increase, furloughs and transaction cost for acquisition of Stelligent Quarterly Financials Snapshot (Consolidated) Particulars (Rs bn) 3QFY19 3QFY18 YoY (%) 2QFY19 QoQ (%) Net Sales USD mn 282.7 251.6 12.4 275.6 2.6 Net Sales 19.71 16.61 18.7 19.15 2.9 Employee Expenses 11.91 9.82 21.3 11.36 4.9 SG&A Expenses 4.49 4.05 11.0 4.47 0.6 EBITDA 3.31 2.74 20.6 3.33 (0.7) Depreciation 0.20 0.18 11.4 0.18 6.5 EBIT 3.11 2.57 21.2 3.15 (1.1) Other Income 0.50 0.35 41.0 0.47 6.9 Interest Cost 0.03 0.03 (3.4) 0.03 7.7 PBT 3.58 2.89 23.9 3.59 (0.1) Tax 0.80 0.74 8.1 0.88 (8.7) RPAT 2.78 2.15 29.3 2.71 2.6 EO Items (Adj For Tax) - 0.05 NA - NA APAT 2.78 2.10 32.3 2.71 2.6 Margin Analysis (%) 3QFY19 3QFY18 YoY (bps) 2QFY19 QoQ (bps) Employee Expenses % Net Sales 60.4 59.1 131 59.3 113 Gross Margin % 39.6 40.9 (131) 40.7 (113) EBITDA Margin (%) 16.8 16.5 26 17.4 (61) EBIT Margin (%) 15.8 15.5 33 16.4 (65) Tax Rate (%) 22.4 25.6 (326) 24.5 (209) APAT Margin (%) 14.1 12.6 146 14.1 (4) EBIT margin outlook of 15 to 17% maintained and ETR band of 25 to 27% Page 2
Customer services and Application development led growth at 11.3% & 10.4% QoQ respectively Stelligent acquisition contributed to increase in ADM revenue, Stelligent (acquired for USD 25mn) specializes in DevOps automation in AWS Growth in HP-DXC channel supported by supplier consolidation and automation, outlook of at-orabove market growth over medium term Service-Line Revenue Split (% of revenue) 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 Application Maintenance & Other Services 35.6 34.6 33.1 31.2 30.2 34.4 35.8 Application Development 24.7 24.0 26.3 26.2 27.5 27.7 29.8 Customer Service 1.5 1.7 1.4 1.3 1.2 1.0 1.1 Service / Technical Help Desk 5.4 7.2 7.6 7.4 8.2 6.5 6.7 Transaction Processing Service 7.0 6.8 7.0 6.9 6.6 6.3 6.2 Infrastructure Management Services 13.8 13.4 13.2 15.2 14.8 14.2 12.7 Knowledge Processes 12.0 12.2 10.8 11.7 11.4 9.8 7.4 License Income 0.1 0.1 0.6 0.1 0.1 0.1 0.2 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Revenue Growth By Service-Line (QoQ, %) 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 Application Maintenance & Other Services 0.6 2.0 (0.7) (0.9) (1.8) 17.1 6.8 Application Development 5.0 2.1 13.8 4.4 6.9 3.4 10.4 Customer Service (13.8) 17.7 (11.3) (1.8) (7.8) (13.6) 11.3 Service / Technical Help Desk 153.4 40.2 9.8 2.8 12.5 (19.3) 7.0 Transaction Processing Service 12.0 2.0 7.3 2.6 (2.2) (2.4) 1.6 Infrastructure Management Services 4.1 2.5 1.7 21.1 (0.6) (2.1) (8.4) Knowledge Processes (8.9) 6.4 (7.7) 13.1 (0.9) (11.5) (22.7) License Income (81.8) 33.0 376.0 (82.1) 6.3 21.2 95.4 Total 4.3 4.9 3.8 5.0 1.7 2.6 2.6 Page 3
Americas was flat while EMEA & RoW (Australia) led the growth Direct Core (56% of rev) and HP/DXC channel (29% of rev) grew 6% QoQ and 6.4% QoQ in CC terms respectively Revenue from Blackstone channel expected ~5% of FY19E revenue with 5 new logo wins from Blackstone portfolio in FY19 (10 logos added overall) Digital Risk (9.8% of 9MFY19 rev) declined due to delay in closure of new contracts and lower originations volume; management expects to stabilize this segment to USD 28 to 30mn band in FY20 with sequential growth in 4Q Revenue-Split By Geography (% of revenue) 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 Americas 79.5 80.1 80.2 79.1 79.1 80.1 78.3 EMEA 9.8 9.5 9.8 11.0 11.5 10.8 11.2 India 6.5 6.4 6.4 6.4 6.3 5.8 5.6 RoW 4.2 4.0 3.6 3.6 3.1 3.2 4.9 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Revenue Growth By Geography (QoQ, %) 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 Americas 4.8 5.7 4.0 3.5 1.8 3.9 0.2 EMEA 7.3 1.5 7.2 18.0 6.0 (3.4) 6.8 India 7.5 4.1 2.7 5.0 1.3 (5.6) (1.9) RoW (13.2) (0.6) (6.2) 3.0 (11.3) 7.2 54.4 Total 4.3 4.9 3.8 5.0 1.7 2.6 2.6 Revenue Segment By Channel (% of revenue) 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 HP/DXC channel 25.8 26.1 26.0 27.0 27.4 28.3 29.0 Direct International 70.1 70.3 70.3 69.0 69.4 68.0 67.4 Others 4.1 3.6 3.7 4.0 3.2 3.7 3.6 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Revenue Growth By Channel Segment (QoQ, %) 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 HP/DXC channel 10.3 6.3 3.4 9.1 3.0 6.0 5.3 Direct International 1.5 5.3 3.8 3.0 2.3 0.5 1.7 Others 17.9 (9.2) 7.6 12.6 (17.0) 18.1 (1.5) Total 4.3 4.9 3.8 5.0 1.7 2.6 2.6 Page 4
Growth was offshore-led, with 4.6% QoQ supported by growth in offshore realisation Growth in emerging verticals (27.3% of rev) driven by travel & transportation and healthcare BFS (44.1% of rev) declined 1.8% QoQ while Insurance (11.8% of rev) grew 7.5% QoQ Revenue Segment By Onsite-Offshore Mix (% of revenue) 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 Onsite 54.0 55.2 55.6 55.8 57.5 58.0 57.1 Offshore 46.0 44.8 44.4 44.2 42.5 42.0 42.9 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Revenue Growth By Onsite-Offshore Mix (QoQ, %) 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 Onsite 9.9 7.3 4.6 5.3 4.8 3.5 1.1 Offshore (1.7) 2.1 2.9 4.6 (2.1) 1.4 4.6 Total 4.3 4.9 3.8 5.0 1.7 2.6 2.6 Billing Rate (USD/hr) 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 Onsite 74.0 71.9 68.5 68.7 72.2 65.9 61.7 Offshore 14.9 15.3 16.1 16.2 15.5 15.6 17.0 Billing Rate Growth (QoQ, %) 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 Onsite 9.3 (2.7) (4.7) 0.2 5.0 (8.7) (6.4) Offshore 0.5 2.4 5.2 0.7 (4.2) 1.0 8.4 Page 5
Geographical Revenue Break-up (% of revenue) 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 Onsite headcount 3,694 4,037 4,479 4,526 4,551 5,217 5,633 - Application Services 2,373 2,363 2,392 2,456 2,550 2,991 3,539 - ITO Services 277 676 1,106 1,120 1,087 1,312 1,210 - BPO Services 1,044 998 981 950 914 914 884 Offshore headcount 16,914 16,857 16,594 16,541 16,847 17,096 17,365 - Application Services 8,668 8,486 8,228 8,281 8,680 8,962 9,286 - ITO Services 3,055 3,011 3,062 3,121 3,075 2,994 2,843 - BPO Services 5,191 5,360 5,304 5,139 5,092 5,140 5,236 Sales and Marketing 346 330 300 278 270 270 292 General and Administration 943 932 897 894 898 895 925 Total Headcount 21,897 22,156 22,270 22,239 22,566 23,478 24,215 Utilisation (%) - Application Services 81 83 82 86 85 85 84 - ITO Services 89 89 89 94 93 93 90 - BPO Services 92 90 90 92 94 91 85 Page 6
Mphasis completed buyback of Rs 9.94bn Unbilled revenue increased in 3Q by 10 days QoQ, however expected to normalise in 4Q Key Assumptions Particulars FY15 FY16 FY17 FY18 FY19E FY20E FY21E HP-DXC channel Revenue growth (%) (12.1) (26.1) (11.0) 21.6 22.2 14.6 10.7 Direct International Revenue growth (%) 3.8 13.5 2.6 7.4 10.5 13.5 12.3 Onsite Revenue growth (%) (3.7) 9.3 (0.8) 18.5 17.4 11.6 12.0 Offshore Revenue growth (%) 1.7 (11.1) (6.1) 2.4 7.4 17.4 10.2 Total USD revenue growth (%) (0.8) (2.0) (3.4) 10.7 12.9 14.1 11.2 USD/INR rate 61.2 65.6 67.1 64.5 70.4 72.0 72.0 EBIT margin (%) 13.3 12.8 14.6 15.3 16.3 17.1 18.2 Change In Estimates Particulars Earlier estimates Revised estimates % change FY19E Revenue (USD mn) 1,104 1,107 0.3 Revenue (Rs bn) 77.98 77.91 (0.1) EBITDA (Rs bn) 13.45 13.49 0.3 EBITDA Margin (%) 17.2% 17.3% 7bps EPS (Rs) 56.1 58.1 3.6 FY20E Revenue (USD mn) 1,246 1,276 2.5 Revenue (Rs bn) 89.68 91.89 2.5 EBITDA (Rs bn) 16.62 16.78 0.9 EBITDA Margin (%) 18.5% 18.3% (28)bps EPS (Rs) 65.9 68.2 3.4 Source: HDFC sec Inst Research Page 7
Peer Set Comparison Company Mcap (Rs bn) CMP (Rs) Reco. TP (Rs) EPS (Rs) P/E (x) RoE (%) FY18 FY19E FY20E FY21E FY18 FY19E FY20E FY21E FY18 FY19E FY20E FY21E L&T Infotech 295 1,713 BUY 2,265 67.0 87.4 92.2 105.9 25.6 19.6 18.6 16.2 33.2 35.3 30.7 29.6 Mphasis 178 921 BUY 1,390 45.4 58.1 68.2 81.5 20.3 15.9 13.5 11.3 14.6 20.5 23.3 24.1 L&T Tech 173 1,672 BUY 2,055 45.7 66.5 75.3 97.7 36.6 25.1 22.2 17.1 27.7 31.9 29.8 31.8 Mindtree 145 886 BUY 1,135 30.5 44.3 52.5 59.0 29.0 20.0 16.9 15.0 20.5 25.5 25.1 24.3 Hexaware * 96 324 BUY 475 16.9 20.9 23.2 26.4 19.2 15.5 13.9 12.3 26.9 28.6 27.3 26.8 Cyient 67 600 BUY 804 38.6 39.2 45.5 50.7 15.5 15.3 13.2 11.8 18.1 17.9 18.9 19.0 Tata Elxsi 57 913 NR 1,145 38.5 46.9 51.5 59.8 23.7 19.5 17.7 15.3 37.0 35.1 31.2 29.8 Zensar 51 226 BUY 315 10.6 13.4 16.7 19.5 21.3 16.8 13.5 11.6 15.1 16.8 18.1 18.3 Persistent 45 562 BUY 800 40.4 44.4 51.0 59.5 13.9 12.6 11.0 9.4 16.0 15.8 16.3 16.9 eclerx 41 1,055 NEU 1,195 70.8 70.9 79.0 96.7 14.9 14.9 13.4 10.9 23.9 22.3 23.9 23.8 Sonata 33 319 BUY 440 18.6 22.3 25.3 28.1 17.2 14.3 12.6 11.3 31.0 33.4 33.5 33.1 HGS 13 630 NR 725 93.3 82.7 86.4 92.1 6.8 7.6 7.3 6.8 13.8 11.1 10.6 10.4 TIER-2 IT AVG. 20.3 16.4 14.5 12.4 23.1 24.5 24.1 24.0 Source: HDFC sec Inst Research, * Dec Y-E, TP implies Fair Value for Not Rated stocks Page 8
Income Statement (Consolidated) YE March (Rs bn) FY17 FY18 FY19E FY20E FY21E Net Revenues (USD mn) 905 1,015 1,107 1,276 1,417 Growth (%) -2.4% 12.1% 9.1% 15.3% 11.0% Net Revenues 60.76 65.46 77.91 91.89 102.03 Growth (%) -0.1% 7.7% 19.0% 17.9% 11.0% Employee Expenses 35.56 39.00 46.13 53.19 58.46 SG&A Expenses 15.52 15.84 18.28 21.92 23.99 EBITDA 9.69 10.63 13.49 16.78 19.58 EBITDA Margin (%) 15.9% 16.2% 17.3% 18.3% 19.2% EBITDA Growth (%) 7.2% 9.7% 27.0% 24.4% 16.7% Depreciation 0.79 0.61 0.80 1.02 1.00 EBIT 8.90 10.02 12.69 15.76 18.58 EBIT Margin (%) 14.6% 15.3% 16.3% 17.1% 18.2% Other Income (Including EO Items) 2.39 1.62 1.79 1.68 2.25 Interest 0.14 0.13 0.17 0.17 0.20 PBT 11.14 11.51 14.31 17.26 20.63 Tax (Incl Deferred) 3.08 2.90 3.51 4.57 5.47 RPAT 7.91 8.48 10.81 12.69 15.16 APAT 8.07 8.46 10.81 12.69 15.16 APAT Growth (%) 17.5% 4.8% 27.8% 17.4% 19.5% Adjusted EPS (Rs) 43.3 45.4 58.1 68.2 81.5 EPS Growth (%) 17.5% 4.8% 27.8% 17.4% 19.5% Source: Company, HDFC sec Inst Research Balance Sheet (Consolidated) YE March (Rs bn) FY17 FY18 FY19E FY20E FY21E SOURCES OF FUNDS Share Capital - Equity 2.10 1.93 1.86 1.86 1.86 Reserves 59.42 52.89 48.90 56.23 66.03 Total Shareholders Funds 61.52 54.82 50.76 58.09 67.89 Total Debt 4.17 5.30 4.91 5.61 6.56 Net Deferred Taxes (0.46) (1.01) (1.01) (1.01) (1.01) Long Term Provisions & Others 0.60 0.97 1.15 1.36 1.51 TOTAL SOURCES OF FUNDS 65.84 60.07 55.81 64.05 74.95 APPLICATION OF FUNDS Net Block 2.24 1.83 0.92 1.00 1.11 Goodwill 16.98 17.01 17.01 17.01 17.01 Other Non-current Assets 7.47 7.23 8.63 10.18 11.30 Total Non-current Assets 26.69 26.09 26.58 28.21 29.44 Debtors 6.28 8.12 9.66 11.39 12.65 Other Current Assets 9.37 9.63 11.46 13.51 15.00 Cash & Equivalents 30.21 24.96 18.87 23.66 31.90 Total Current Assets 45.86 42.71 39.98 48.57 59.55 Creditors 3.88 5.02 5.98 7.05 7.83 Other Current Liabilities & Prov. 2.84 3.70 4.77 5.67 6.21 Total Current Liabilities 6.71 8.72 10.75 12.73 14.04 Net Current Assets 39.14 33.98 29.23 35.84 45.51 TOTAL APPLICATION OF FUNDS 65.84 60.07 55.81 64.05 74.95 Source: Company, HDFC sec Inst Research Page 9
Cash Flow (Consolidated) YE March (Rs bn) FY17 FY18 FY19E FY20E FY21E Reported PBT 10.99 11.38 14.31 17.26 20.63 Interest expenses 0.14 0.13 0.17 0.17 0.20 Depreciation 0.79 0.61 0.80 1.02 1.00 Working Capital Change (3.35) (1.50) (1.45) (1.63) (1.18) Tax Paid (3.08) (2.90) (3.51) (4.57) (5.47) OPERATING CASH FLOW ( a ) 3.78 6.51 8.97 11.02 13.53 Capex (1.18) (0.33) (2.69) (0.61) (0.61) Free cash flow (FCF) 2.60 6.18 6.28 10.41 12.92 Investments - - - - - Non-operating Income 1.72 1.20 1.35 1.24 1.65 INVESTING CASH FLOW ( b ) 0.54 0.88 (1.33) 0.63 1.04 Debt Issuance/(Repaid) (0.51) 1.30 (0.29) 0.52 0.70 Interest Expenses (0.14) (0.13) (0.17) (0.17) (0.20) FCFE 1.95 7.35 5.83 10.76 13.42 Share Capital Issuance 0.00 (0.17) (0.07) - - Dividend/ Buyback (4.29) (15.67) (14.80) (5.36) (5.36) FINANCING CASH FLOW ( c ) (4.94) (14.67) (15.32) (5.01) (4.86) NET CASH FLOW (a+b+c) (0.62) (7.29) (7.69) 6.64 9.71 Closing Cash & Equivalents 30.21 24.96 18.87 23.66 31.90 Source: Company, HDFC sec Inst Research Key Ratios (Consolidated) YE March FY17 FY18 FY19E FY20E FY21E PROFITABILITY (%) GPM 41.5 40.4 40.8 42.1 42.7 EBITDA Margin 15.9 16.2 17.3 18.3 19.2 APAT Margin 13.3 12.9 13.9 13.8 14.9 RoE 13.4 14.6 20.5 23.3 24.1 RoIC (or Core RoCE) 22.5 23.6 30.0 33.6 37.2 RoCE 13.2 14.5 20.3 23.0 23.7 EFFICIENCY Tax Rate (%) 28.0% 25.7% 24.5% 26.5% 26.5% Fixed Asset Turnover (x) 2.9 3.1 3.5 4.0 4.4 Debtors (days) 65 73 75 75 75 Other Current Assets (days) 56 54 54 54 54 Payables (days) 23 28 28 28 28 Other Current Liab & Provns (days) 26 28 28 28 28 Cash Conversion Cycle (days) 72 70 72 72 72 Debt/EBITDA (x) 0.4 0.5 0.4 0.3 0.3 Net D/E (x) (0.4) (0.3) (0.2) (0.2) (0.3) Interest Coverage (x) 64 77 76 91 92 PER SHARE DATA (Rs) EPS 43.3 45.4 58.1 68.2 81.5 CEPS 42 47 62 74 87 Dividend 17 20 22 24 24 Book Value 293 284 273 312 365 VALUATION P/E (x) 21.2 20.3 15.9 13.5 11.3 P/BV (x) 3.1 3.2 3.4 3.0 2.5 EV/EBITDA (x) 15.1 14.6 12.0 9.4 7.7 OCF/EV (%) 6.2% 10.7% 6.4% 7.8% 10.1% FCF/EV (%) 5.4% 10.4% 4.8% 7.5% 9.7% FCFE/Mkt Cap (%) 4.2% 10.1% 4.2% 7.1% 8.8% Dividend Yield (%) 1.8% 2.2% 2.4% 2.6% 2.6% Source: Company, HDFC sec Inst Research Page 10
Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 RECOMMENDATION HISTORY Mphasis 1,400 1,200 1,000 800 600 400 TP Date CMP Reco Target 10-Jan-18 712 BUY 830 26-Jan-18 824 BUY 980 12-Apr-18 899 BUY 1,000 14-May-18 988 BUY 1,060 6-Jul-18 1,109 BUY 1,200 8-Aug-18 1,150 BUY 1,300 10-Oct-18 1,080 BUY 1,455 30-Nov-18 950 BUY 1,290 8-Jan-19 925 BUY 1,335 25-Jan-19 921 BUY 1,390 Rating Definitions BUY : Where the stock is expected to deliver more than 10% returns over the next 12 month period NEUTRAL : Where the stock is expected to deliver (-)10% to 10% returns over the next 12 month period SELL : Where the stock is expected to deliver less than (-)10% returns over the next 12 month period Page 11
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HSL or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from t date of this report for services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction in the normal course of business. HSL or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither HSL nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. HSL may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the subject company or third party in connection with the Research Report. HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg (East), Mumbai 400 042 Phone: (022) 3075 3400 Fax: (022) 2496 5066 Compliance Officer: Binkle R. Oza Email: complianceofficer@hdfcsec.com Phone: (022) 3045 3600 HDFC Securities Limited, SEBI Reg. No.: NSE-INB/F/E 231109431, BSE-INB/F 011109437, AMFI Reg. No. ARN: 13549, PFRDA Reg. No. POP: 04102015, IRDA Corporate Agent License No.: HDF 2806925/HDF C000222657, SEBI Research Analyst Reg. 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