Mphasis share price: The tech firm's Q3 results failed to cheer investors in early trade but the Mphasis stock rebounded over 9 percent from day's low to an intraday high of Rs 3200.
Mphasis Ltd's share price recovered 9.5 percent from its intraday low of Rs 2,920.05 on Friday, a day after the information technology company posted its financial results for the quarter ended December 31, 2021. The upward movement was in line with global brokerage Morgan Stanley’s upbeat commentary post Q3 earnings.
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The tech stock rose as much as 4.7 percent at Rs 3,200 from its previous close.
The IT firm reported a 9.8 percent increase in consolidated net profit at Rs 357.6 crore for the December 2021 quarter. The company's net profit stood at Rs 325.5 crore in the year-ago period, the company said in a regulatory filing on Thursday.
Its revenue from operations grew 26.2 percent to Rs 3,123.7 crore in the reported quarter from Rs 2,474.3 crore in the year-ago period. The company said its gross revenue grew 7.8 percent quarter-on-quarter and 24.2 percent year-on-year in constant currency terms.
Despite the “third consecutive quarter of strong revenue growth in FY22”, the Q3 earnings failed to cheer investors in early trade. The Mphasis shares, however, rebounded during the session.
Morgan Stanley has maintained its ‘overweight’ rating on Mphasis stock with a target price of Rs 3,900. This means the brokerage sees a 26 percent upside in the IT stock, which was quoted at Rs 3,088.50 at the time of writing. It also said the company’s new deal wins at $335 million were significantly better than trends.
Meanwhile, market expert Prakash Gaba of prakashgaba.com suggested buying Mphasis shares with a stop loss of Rs 3,050 and a target of Rs 3,250-3,300.
Mphasis’ management said the company is well-positioned to report industry-leading growth in FY22.
“The overall growth rate has been very strong; 30 percent-plus growth in the direct business, organic basis, the third quarter in a row and the deal wins have been strong as well. So fairly well-positioned for industry-leading growth in direct and as the contribution of direct continues to increase, it’s not at 93 percent, the overall company growth and direct growth also starts to converge progressively,” the firm’s CEO Nitin Rakesh told CNBC-TV18.
Moreover, the IT solutions provider specializing in cloud and cognitive services also announced its partnership with crypto exchange CrossTower on Thursday. They will build a Center of Excellence (CoE) focused on Web 3.0 and a series of blockchain-based products that will be launched and traded on the CrossTower platform.
First Published: Jan 21, 2022 1:00 PM IST