Emkay Global Financial Services has maintained its buy rating on Mphasis with a price target of Rs 240 in its March 13, 2009 research report.
“Mphasiss strong parentage of HP-EDS has helped it sustain high growth rates in the recent past and we believe that would continue to provide strong support in a tough demand environment. We highlight that Mphasiss ITO businesss growth is driven by restructuring of EDSs existing ITO contracts as the new contracts incorporate significant offshore ramp up in Infrastructure outsourcing.”
“We highlight that the erstwhile EDS management (prior to the HP takeover) had categorically attributed its improved success rate in new deal wins/renewals to Mphasiss offshore strength and had indicated that those deals had a substantial offshore component. We believe Mphasis remains the Best Demand story in a tough macro environment helped by its strong HP-EDS parentage. Maintain BUY with a price target of Rs 240,” says Emkay Global Financial Services’ research report.
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