BFL Software today crossed the Rs 500-mark on the Bombay Stock Exchange
on the back of projections of a sharp growth in its IT-enabled services
today closed at Rs 490 on the BSE, up by 4.4 per cent, after touching
a 52-week high of Rs 505. The MphasiS stock has been one of the
outperforming stocks in the last six months. Since October 2001,
the share price has increased from Rs 100 to the current levels,
a rise of around 400 per cent.
Analysts attributed this rally in the stock price
to the growth expected from the company's IT-enabled services business,
MphasiS BPO. They feel that the 200 per cent growth projected by
the company recently seems an achievable target.
"The IT-enabled business of MphasiS would drive
the growth of the company. We estimate MphasiS BPO revenues to grow
to $21.9 million by 2004 with an EBDITA margin of 32.1 per cent,"
says an Enam Securities report on the company.
"There is a huge growth potential in the IT-enabled
business in India. MphasiS BPO, particularly, is attracting a lot
of interest right now. We are confident of our IT-enabled business
as we are confident of our soft skills both in terms of training
and deploying people," Mr Jaithirth Rao, Chairman and Managing Director,
MphasiS BFL, told Business Line.
are also confident of the company achieving its guidance for the
current financial year as well as the next.
"We believe the guidance issued by the company
is achievable even under a scenario of weak growth for the software
services business. Looking at the immediate growth prospects as
well as long-term growth driver in MphasiS BPO, the stock is attractively
priced," says an SSKI report.
to the guidance issued by the company, this fiscal it expects to
record a 14-per cent growth in topline at Rs 310 crore and a 23-per
cent increase in bottomline. However, Enam has expressed some concern
over the company's client list. It says, "with top clients contributing
over 16 per cent of revenues and the top five category about 52.7
per cent, a sudden problem in any of its top five account could
spell trouble for the company."