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Measuring Mphasis Limited's (NSE:MPHASIS) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess MPHASIS's recent performance announced on 31 March 2019 and compare these figures to its historical trend and industry movements.
View our latest analysis for Mphasis
Could MPHASIS beat the long-term trend and outperform its industry?
MPHASIS's trailing twelve-month earnings (from 31 March 2019) of ₹11b has jumped 26% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 9.5%, indicating the rate at which MPHASIS is growing has accelerated. What's enabled this growth? Let's take a look at whether it is only because of an industry uplift, or if Mphasis has seen some company-specific growth.
In terms of returns from investment, Mphasis has invested its equity funds well leading to a 20% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 15% exceeds the IN IT industry of 8.5%, indicating Mphasis has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Mphasis’s debt level, has increased over the past 3 years from 13% to 26%.
What does this mean?
Though Mphasis's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Mphasis gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Mphasis to get a more holistic view of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for MPHASIS’s future growth? Take a look at our free research report of analyst consensus for MPHASIS’s outlook.
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Financial Health: Are MPHASIS’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
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Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.