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    MPS LTD Valuation Report

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    Siddharth Shah
    MPS Limited is an Indian publishing and digital solutions company with a market capitalization of Rs. 1061 crore. The stock valuation report recommends a strong buy rating for MPS Limited based on its debt-free status, strong operating margins of 40%, and acquisition of Mag+ which is expected to boost profits starting in 2017-18. The report projects an upside of 204% for MPS Limited over the next 3 years based on an expected EPS CAGR of 27% and target prices of Rs. 724, Rs. 919 and Rs. 1168 for years 2017-18, 2018-19 and 2019-20 respectively.

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    MPS LTD Valuation Report

    Uploaded by

    Siddharth Shah
    77 views1 page
    MPS Limited is an Indian publishing and digital solutions company with a market capitalization of Rs. 1061 crore. The stock valuation report recommends a strong buy rating for MPS Limited based on its debt-free status, strong operating margins of 40%, and acquisition of Mag+ which is expected to boost profits starting in 2017-18. The report projects an upside of 204% for MPS Limited over the next 3 years based on an expected EPS CAGR of 27% and target prices of Rs. 724, Rs. 919 and Rs. 1168 for years 2017-18, 2018-19 and 2019-20 respectively.

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    MPS Ltd Valuation Report

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    MPS Limited is an Indian publishing and digital solutions company with a market capitalization of Rs. 1061 crore. The stock valuation report recommends a strong buy rating for MPS Limited based on its debt-free status, strong operating margins of 40%, and acquisition of Mag+ which is expected to boost profits starting in 2017-18. The report projects an upside of 204% for MPS Limited over the next 3 years based on an expected EPS CAGR of 27% and target prices of Rs. 724, Rs. 919 and Rs. 1168 for years 2017-18, 2018-19 and 2019-20 respectively.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    77 views1 page

    MPS LTD Valuation Report

    Uploaded by

    Siddharth Shah
    MPS Limited is an Indian publishing and digital solutions company with a market capitalization of Rs. 1061 crore. The stock valuation report recommends a strong buy rating for MPS Limited based on its debt-free status, strong operating margins of 40%, and acquisition of Mag+ which is expected to boost profits starting in 2017-18. The report projects an upside of 204% for MPS Limited over the next 3 years based on an expected EPS CAGR of 27% and target prices of Rs. 724, Rs. 919 and Rs. 1168 for years 2017-18, 2018-19 and 2019-20 respectively.

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    © All Rights Reserved
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    Stock Valuation Report

    RECOMMENDATION STRONG BUY Date -26th September, 2017

    MPS Limited
    Industry Publishing & Typesetting EPS Rs 37.33
    Products Publishing, content and digital solutions. P/E 15.27
    Face Value Rs 10
    Dividend NA
    CMP Rs 570.10 52 wk High 775.00 Dividend Yield NA
    Market Cap Rs 1061 cr 52 wk Low 554.00

    Company Information
    MPS Limited, earlier an Indian subsidiary of Macmillan (Holdings) Limited was acquired by ADI BPO Services Limited
    in 2011. The company has a deep domain insight, technology competence and is the preferred technology and
    content solutions provider in global publishing services outsourcing. It has the following business verticals
    Publishing, Content Creation & Development, Content & Media Asset Production, Learning solutions, Customer
    Support and Order Management, and Platform Development and Technology services.

    Key Positives Potential Negatives


    Provider of end to end outsourced services in Numerous acquisitions.
    publishing. Low on cash (~ 3cr) but excessive current
    Debt free with Strong operating margins (40%). investments (~206cr)
    Focus on core business. Almost entire revenue stream from
    Strong technology and acquisitions (Mag+). international operations.

    Future Outlook
    Acquisition of Mag+, a leading SaaS provider for developing content based mobile application (4500) for
    publishers and enterprises, is expected to add to profitability from 2017-18 onwards.
    It is operationally flat which helps make streamlined and quick decisions.
    The company is expected to improve its margins because of end of teething problems of Mag+ and its
    integration into the company.

    Valuation Methodology (CMP 570.10)


    P/E Ratio 15.27x and EPS Rs 37.33
    5 year average margin growth is 27%
    3 year target indicates an upside of 204%.

    Year 2017-18 2018-19 2019-20


    Expected EPS 47.41 60.21 76.46
    Target 724 919 1168

    Analyst Information Disclaimer


    Siddharth Shah The analyst has compiled this report from public sources, for informational use. The
    [email protected] Analyst holds no position in this security. Any losses arising from an action to buy or
    +91-99204-45094 sell stocks is not a responsibility of the Analyst. Please consult your financial advisor.

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