Religare Institutional Research has recommended 'Sell' on Mphasis with target price of Rs 375 in its report.

Commenting on the investment rationale, the stock broker said, ''We met the Mphasis (MPHL) management. Key takeaways are Q1FY15 to be weak as revenues dip 4-5% QoQ due to a QoQ decline of 15% in Digital Risk (DR) and 5-6% in HP revenues (on a like-to-like basis for 2 months in previous quarter); DR business to remain weak due to a slowdown in the US mortgage market.

MPHL has won 3 deals and has 3-4 large deals in the pipeline; Margins to remain stable, in the range of 15-16%. We remain cautious on the stock given the growth challenges in HP/DR businesses."

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