MPS Q4 Results Review - Revenue Inline; Miss On Profitability; Expect 25%+ PAT Growth In FY25: Dolat Capital

Dolat Capital Report

MPS Ltd. reported in-line revenue and grew by 11.7% (our estimate: 11.7%). Content/ Platform/ eLearning saw revenue growth of 13%/24%/-0.8% on QoQ basis.

Operating margins contracted by 463bps QoQ to 24.8%, impacted by AJE acquisition. Segmental margin decline was led by dip in Content/Platform biz margins, down by 691 bps/ 1137 bps sequentially.

MPS remains optimistic about FY25 growth strategy and foresees potential in delivering 25%+ PAT growth driven by strengthened market positions, increased order pipelines, and operational improvements across segments.

Strong outlook for next three-four years and focus on acquiring growth raises our confidence in the biz. We maintain ‘Buy’ rating with target price of Rs 2,080, valued at 20 times of FY26E EPS (implies ~two times PEG).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.