Shares of technology solutions provider Mphasis Ltd. rose 2.38% to ₹2,854.30 on Monday after global brokerage firm Morgan Stanley upgraded its price target on the stock, citing improving fundamentals and a strong growth outlook.
Morgan Stanley increased its target price for Mphasis to ₹3,625 from ₹3,500 earlier, implying a potential upside of nearly 30% from Friday’s closing levels. The brokerage described the company as “positioning for a breakout,” noting that micro factors are aligning and that potential macro support from interest rate cuts could further accelerate growth.
The firm highlighted five key catalysts for a potential re-rating: consistent pipeline growth, larger quarterly deal wins exceeding the current $300–400 million run rate, stronger revenue diversification beyond BFSI, potential gains from rate cuts boosting digital risk (DR) revenue, and the possibility of a majority stakeholder exit in the next 2–3 years.
Morgan Stanley also raised its revenue growth estimates for FY27 and FY28, projecting stronger momentum for the IT services firm. As of today, Mphasis has a market capitalization of ₹550.75 billion and is trading in the range of ₹2,808–₹2,858.
