MPS Limited

Communication Services — Publishing · NSE

₹2,507.60+₹1.10 (+0.04%)

DalalBaazaar Score

77 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of MPS Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

MPS Limited provides platforms and services for content creation, full-service production, and distribution to the publishers, learning companies, corporate institutions, libraries, and content aggregators in India, Europe, the United States, and internationally.

IndustryPublishing

SectorCommunication Services

Employees2,965

Annual revenue₹768 Cr

How does it make money?

Turns over ₹768 Cr a year. Of every ₹100 of sales, about ₹23 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation. Each of its 2,965 employees supports ₹25.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹25.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are BHARTI AIRTEL LIMITED, VODAFONE IDEA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 33.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 29.0% against a peer median of 20.2% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE20.2%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 7.1% and earnings to grow about 5.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+7.1%

Est. earnings growth+5.6%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +54% while net margin moved +3% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+54%

Margin effect+3%

DalalBaazaar Score

77/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 22.6x is within a normal band
• P/E is close to its own historical median of 26.3x
✗ P/B of 7.14x is a steep premium to book

Quality vs. Valuation

Company Quality

84/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

54/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

22.6x

3Y Median

26.3x

40 monthly readings · mean 27.3x · range 17.0x–40.7x

Sector Median

21.7x

median of 2 sector peers

🟢Current valuation is approximately 14% below its 3y median of 26.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 21.7x.

vs. its own history

Fair

26.3x median over 40 months · -14%

vs. sector peers

Fair

21.7x median of 2 peers · +4%

vs. generic bands

Fair

15x–35x

EV/EBITDA

17.2x

PEG

1.36

What's Good / What's Bad

🟢 What's Going Well5

Cash generation is improving
Free cash flow is up 74% over 3 years.
Return on equity is rising
ROE has improved from 25.6% to 29.0%.
High return on capital employed
ROCE of 33.4% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.10x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 33.8% to 32.2% over 3 years.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 701% over 3 years, from ₹8 Cr to ₹61 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 33.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹188 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 33.8% to 32.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 12% a year✓ 15.4% CAGR
Latest reported year was 20.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 30%✓ 32.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹188 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 30%✓ 33.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹4,256 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.6x

Fair

Fairly valued against the generic band

P/B Ratio

7.14x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹110.95

Profitable

Profitable on a per-share basis

ROE

29.0%

Strong

Strong capital efficiency

ROCE

33.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.10x

Low

Conservative leverage

Revenue Growth (YoY)

20.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

43.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.99%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹188 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

19.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

30.3%

Good

Healthy core-business profitability

Net Margin

23.4%

Good

Strong bottom-line conversion

Current Ratio

1.45

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.43

Defensive

Steadier than the market

52W Range Position

71%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2603.0 / 2683.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

35.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹500 Cr	₹545 Cr	₹727 Cr	₹768 Cr	+15.4%
EBITDA	₹169 Cr	₹181 Cr	₹220 Cr	₹247 Cr	+13.5%
EBITDA Margin	33.8%	33.2%	30.3%	32.2%	—
PAT (Net Profit)	₹109 Cr	₹119 Cr	₹149 Cr	₹173 Cr	+16.6%
EPS	₹63.87	₹69.96	₹87.73	₹102.06	+16.9%
ROE	25.6%	25.8%	31.1%	29.0%	—
ROCE	32.6%	30.7%	37.6%	33.4%	—
Total Debt	₹8 Cr	₹5 Cr	₹4 Cr	₹61 Cr	+100.1%
Free Cash Flow	₹108 Cr	₹111 Cr	₹92 Cr	₹188 Cr	+20.2%

🟢 Revenue has grown at 15.4% a year over 3 years.

🟢 EBITDA has grown at 13.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 33.8% to 32.2% over 3 years (-1.6 pts).

🟢 PAT (Net Profit) has grown at 16.6% a year over 3 years.

🟢 EPS has grown at 16.9% a year over 3 years.

🟢 ROE has risen from 25.6% to 29.0% over 3 years (+3.5 pts).

🟡 ROCE has held roughly flat at 33.4% over 3 years.

🔴 Total Debt has grown at 100.1% a year over 3 years.

🟢 Free Cash Flow has grown at 20.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹942 Cr

Total Liabilities

₹346 Cr

Cash & Equivalents

₹77 Cr

Operating Cash Flow

₹197 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

1.9%

Insider Holding

73.4%

Corporate Actions

Dividend Rate

₹50

Ex-Dividend Date

13 Aug 2025

Analyst Consensus

Recommendations

0 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹2,600

+3.7% vs CMP

Target Range

₹2,600 – ₹2,600

Peer Comparison

Company	P/E	ROE
BHARTI AIRTEL LIMITED	39.8x	20.2%
VODAFONE IDEA LIMITED	3.6x	—

Recent News

5 mixed1 general

MPS issues addendum on ADI BPO merger, confirms no public dilution

scanx.trade, 13 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Intesa Sanpaolo Adds €800 Million to Its €35 Billion MPS Bid and Wins Support From MPS’s Largest Shareholder

TIKR.com, 06 Oct

MPS shares hit 52-week high on strong Q1 rally, incorporation of wholly-owned subsidiary

Upstox, 22 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

MPS Limited Just Beat EPS By 18%: Here's What Analysts Think Will Happen Next

Simply Wall Street, 24 JulAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

MPS hits 20% upper circuit as Q1 PAT jumps 43%; board okays Singapore WOS

Business Standard, 22 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Italy's Intesa raises MPS takeover offer price and warns it could drop bid

Reuters, 03 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑