Mphasis Share Price Target: Emkay Sets Rs 2,500 Target on Robust Growth Outlook

Emkay Global Financial Services has reiterated its ‘Buy’ rating on Mphasis Ltd., maintaining a target price of Rs 2,500. The brokerage firm's optimism is rooted in the company’s strong financial performance and continued investments in digital and Artificial Intelligence (AI)-driven initiatives, which are expected to fuel future growth.

The Rs 2,500 target implies a valuation multiple of 22x based on Mphasis’s projected Earnings Per Share (EPS) for December 2024, reflecting confidence in the company’s strategic positioning in a rapidly evolving tech landscape.

Mphasis Q4 FY25 financial performance

Mphasis delivered a robust performance in the March 2025 quarter, reporting record net sales of Rs 3,710 crore — which is its highest in the last five quarters. Its Profit Before Tax (PBT) stood at Rs 531 crore, while profit after tax came in at Rs 446 crore, both registering sequential improvements.

Operating profit rose to Rs 703 crore, and the company posted an earnings per share (EPS) of Rs 23.49, underlining its operational resilience despite a challenging demand environment across the IT sector.

The steady expansion in margins and profitability highlights the management’s “disciplined execution” and focus on optimizing “operational efficiency”.

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Mphasis' key tech-driven partnerships

Mphasis’s future growth blueprint is anchored on its strategic pivot towards artificial intelligence (AI) and next-generation digital solutions, according to Emkay Global

The company recently unveiled the Mphasis Gen AI Foundry in partnership with Amazon Web Services (AWS), aiming to accelerate enterprise adoption of generative AI technologies. Additionally, the rollout of DeepInsights Doc AI, an intelligent document processing platform powered by generative AI, underscores Mphasis’s commitment to staying ahead of the curve.

Its strategic alliances with players like Kore.ai, WorkFusion, and CoreStack are expected to further enhance the company's capabilities in automation, cloud, and AI-led transformation.

According to Emkay, Mphasis’s strategic initiatives, coupled with improving business momentum and healthy financial metrics, position the company well for sustainable long-term growth.

The brokerage firm also highlighted that the company’s focused investments in building new competencies, expanding its client base, and scaling emerging service lines are likely to bear fruit over the medium term.

Emkay’s target price of Rs 2,500 suggests a healthy upside potential from current levels, reinforcing its positive stance on the stock.