In a conversation with Zee Business Managing Editor Anil Singhvi, Market Analyst Sandeep Jain has picked MPS Limited for good returns on the back of strong fundamentals.

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Speaking about the company Sandeep Jain said MPS Limited is a good quality company which is providing content solutions, platform solutions, e-learning solutions, data processing and computer programing. 

 

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"It is a global leader in this particular service and there were few majority stake changes in 2011-12 and today it has a market cap of around 700-1000crore, around 2700 professionals are working in this company. It has 7 delivery centres, 4 offices in Europe and 6 client-serving offices in the US," he said.

Talking about the board of directors, the market analyst said that Nishith Arora, Rahul Arora has brought a good background and have good qualifications, so this also makes the stock impressive as qualified promoters have an edge in this type of business.

 

While on the fundaments, the analyst said that the company has a PE multiple of 18, Return of Capital Employed at 24, 15-16 percent Return on Equity and in the last 3 years sales CAGR is around 16-17percent. The company is also almost a zero debt company as it has a debt of only 18 crore. 

DIIs hold around 3-4 percent while FIIs hold around 5-6 percent shares of the company. Few prominent and renowned investors are also holding public shares because of which there is more confidence in the stock, the market analyst added.

He said in March 2020 the company had a PAT of 9 crore which stood at 13 crore in March 2021. Most importantly the upper levels are corrected and the downside risk is very less, he said. 
He further suggested investing in the stocks of the company and informed that its previous high was 910 and gave a target of 720-725.