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
sidd.shah@live.in 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.