Shares of Mphasis Ltd fell over 8% today after US based brokerage Citi projected a 22% slide for the stock and maintained its sell call for the IT services and consulting company. Mphasis shares slipped 8.02% intraday to Rs 2025.2 against the previous close of Rs 2201.75 on BSE. The stock was the top loser on BSE.
The stock opened with a loss of 3.02% at Rs 2135.15 today. The stock has lost 33.43% in a year but gained 2.79% this year.
Total 0.33 lakh shares of the firm changed hands amounting to a turnover of Rs 6.84 crore on BSE. Market cap of the firm fell to Rs 38,391 crore on BSE. The share hit a 52-week high of Rs 3466.80 on March 31, 2022 and a 52 week low of Rs 1897.35 on December 19, 2022.
In terms of technicals, the relative strength index (RSI) of the stock stands at 59.9, signaling the stock is neither oversold nor overbought. Mphasis has a one-year beta of 1.1, indicating high volatility during the period. Mphasis shares are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The midcap IT firm’s management told Citi that deal wins were taking longer to convert into revenue in the current macro environment after which the brokerage assigned a ‘Sell’ call to the stock.
Citi gave a target price of Rs 1705 for the stock and said mortgage business was likely to remain muted in 4Q. Growth will likely rise in Q4, the brokerage said adding that it expects margins, guided range of 15.25% to 17% in FY23.
The IT services company reported a consolidated revenue of Rs 3,506.2 crore for the December quarter, against Rs 3123 crore in the September quarter of the current fiscal.
Net profit in Q3 increased to Rs 3506 crore from Rs 3123 crore in the December quarter of the previous fiscal.
Mphasis Limited is a global Information Technology (IT) solutions provider specializing in providing cloud and cognitive services applies next-generation technology to help enterprises transform businesses globally. Mphasis Group, a global multicultural organisation headquartered in Bengaluru, specializes in providing a suite of application development and maintenance services infrastructure outsourcing services and business & knowledge process outsourcing solutions to clients around the world.
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