Multibagger alert: this action doubled shareholders’ money in 2021; reached a record level today


The year 2021 delivered a large number of multibagger stocks. Shares of Mphasis Limited have more than doubled investor money so far in 2021. By comparison, the Nifty 50 index has gained over 26% and the S&P BSE Sensex index has risen over 24%.

This multibagger stock has gone from Rs 1,531 to Rs 3,301. It has gained 116 percent since the start of this year and has risen 138 percent in the past year.

Mphasis shares rose 3% to a record high of Rs 3,267.95 on BSE after the company announced it had acquired US design consultancy Blink Interactive Inc for a total amount of $ 94 million, including earn-outs. In a filing, Mphasis said the acquisition is expected to provide access to renowned logos, bolster business activity and increase revenue growth.

“The total addressable market for upstream user research, strategy and design is increasing by 25-30% of salaries, or 4-5 times the overall market for IT services. There is significantly increased emphasis on customer / user centric design in today’s environment. The set of synergy opportunities will revolve around product design, experience and services, as well as end-to-end implementation services across the spectrum of customers and industries we let’s serve together, ”said Nitin Rakesh, CEO and Executive Director of Mphasis.

The action opened 0.19% more at Rs 3,205.15 from the previous close of Rs 3,199.00. With a market cap of Rs 61,340 crore, the shares are above the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

According to MarketsMojo, the company has a low (avg) debt ratio of -0.29 times. Besides, it exhibits high management efficiency with high ROE of 17.58%. He noted that the company has institutional stakes amounting to 39.26%

Additionally, the technical trend has improved from slightly bullish on September 3, 2021, and the stock is now technically in a bullish range. Several factors for the action are bullish like MACD, Bollinger Band, KST, DOW and OBV. However, the appraisal seems to be expensive at the moment.

The company reported a net profit of Rs 339.69 crore for the quarter ended June 2021, compared to a profit of Rs 275.12 during the period of the previous year. Operating income rose 18% to Rs 2,690.83 crore in the quarter ended June, from Rs 2,288.21 crore a year ago. The company’s EPS rose to Rs 18.16 in June 2021 from Rs 14.75 in June 2020.

“We believe that the direct core businesses will generate unmatched growth in the sector during FY22 (28%) thanks to 1) a strong and sustained commercial momentum with a longer tenure and a larger transaction size. important 2) a strong and extensive pipeline, 3) market share gains driving consistent growth across customer groups (top 10 customers grew 24% year-on-year and Top 11-20 customers increased 19% year-on-year based on TTM) and 4) Strong presence in BCM sector sub-sectors (51% of revenue share, + 9.2% in USD QoQ in 1Q22 and 20% year-on-year based on TTM), ”said Prabhudas Lilladher.

Motilal Oswal noted that the ability to win multiple large digital transformation contracts proactively and in supplier consolidation scenarios indicates the strength of its sales and delivery capabilities.

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