IGI Logo

TECHNICAL OUTLOOK

Mphasis has recently ended the 2-year-long corrective phase, with a breakout from a bullish Cup and Handle price pattern.

Post the initial surge, it is forming a fresh buying pivot around the support area of previous swing high.

Its chart pattern combined with recent buoyancy in the IT space is suggesting buying interest at the elevated levels.

FORWARD PE BAND (x)

TECHNICAL CHART : WEEKLY

INVESTMENT RATIONAL

Mphasis, an IT solutions provider helps clients deliver a portfolio of next-generation offerings and services that blend their deep domain expertise with cutting-edge technology. Their major portion of revenue is earned from the American region (~81% of revenue) and Banking sector ( 53%of revenue).

Given the marco-economic challenges in the American region and slow start to the banking and finance sector this fiscal, the management focus remains on acquiring deals from other geographies like Europe & Middle East as well as sectors such as technology, telecom and Insurance.

The company aims to win large and long term deals, develop strategic partnership for technology, explore opportunities in areas of growth in hi-tech, insurance, healthcare, logistics, etc. Besides, there is healthy demand for AI, cloud and transformation deals, strong order pipeline which is yet to get converted to revenue and also are investing behind technology.

So, all this are playing well for the company and has maintained their EBIT margin guidance band of 15.25% 16.25% for FY24.

Please refer disclaimer at https://www.religareonline.com/disclaimer

SEBI Registration number is INZ000174330