Amid AI disruption fear, Mphasis stock set for a 47% upside; here's why 

Shares of Mphasis Ltd are set for a nearly 50% upside despite the AI disruption fears, which have caused bloodbath on Dalal Street. The stock is likely to reach Rs 3,400 mark in a year, said brokerage firm Motilal Oswal adding that AI could also create new opportunities across enterprise IT services. 

However, MOSL said concerns around terminal value and AI-led disruption may restrict near-term multiple re-rating for the IT firm.  

"Over FY25-28, the brokerage forecasts a USD revenue CAGR of ~10.8% and an INR PAT CAGR of ~14%. We value the stock at 26x FY28E EPS, arriving at a TP of Rs 3,400. We reiterate our BUY rating on the stock," said MOSL. 

Mphasis shares trade at Rs 2,283 level in the current session, 1% higher against the previous close of Rs 2259.70. 

The stock is set to breach the 52-week high of Rs 3035.15 reached on September 18, 2025 considering MOSL's bullish price target of Rs 3,400. 

The AI-led, platform-driven IT solutions provider that specializes in cloud and cognitive services for global enterprises views demand conditions as stable backed by continued large-deal activity. Over the last four quarters, it has secured $2bn of TCV wins, with recent deal conversions expected to support near-term growth. 

"While AI is expected to change service delivery over time, it could also create new opportunities across enterprise IT services. We believe scaling AI in large enterprises typically requires cleaning up legacy systems, simplifying architectures, and improving data readiness," said MOSL. 

However, Jefferies in its latest report on Indian IT has downgraded the Mphasis stock to Hold and cut its price target to Rs 2450 from Rs 3410. The stock is already trading below the revised price target.