Mukund Agarwal’s Favourite Smallcap Stock Profits Zoom 45.5%; Declares 200% Dividend!

Company Profile:   

MPS Ltd is a premium B2B learning and platform solutions company that powers the education, research and corporate market in their quest to engage with their learners more meaningfully. It has unlocked a new growth trajectory due to the combined effect of lower attention spans, rapid growth in digital consumption and the recent advances in AI/ML.   

Business Segments:  

Company has three business segments 1. Content Solutions, 2. Platform Solutions and 3. eLearning Solutions.   

1. Content Solutions- Comprehensive content solutions from content creation to delivery across all media that help drive the competitiveness and differentiation of their customers. Revenue share from this segment stood at 52% in FY23.   
2. Platform Solutions- Complete range of configurable platform solutions across the entire content lifecycle delivered as PaaS. First to market with each platform offering and respected as the Innovator and Thought Leader in the marketplace. Revenue share from this segment stood at 23% in FY23.   
3. eLearning Solutions- Deliver high-impact learning and performance support solutions that offer a high engagement quotient, drive learner performance and deliver high ROI for the learner and organization. Revenue share from this segment stood at 25% in FY23. 
   

   Q4FY23 Highlights:   

   Company reported a growth of 15.72% YoY in FX-Adjusted Revenue to Rs 127.9 crore in Q4FY23. EBITDA jumped 44.38% YoY to Rs 45.64 crore and EBITDA margins stood at 35.81% in Q4FY23 as compared to 28.89% in Q4FY22. Profit after tax stood at Rs 32.13 crore growth of 45.59% YoY in Q4FY23.  
   
   eLearning is now the second-largest business segment. As in FY23 it contributed 25% of Total Revenue. Profitability improved by more than double during FY23 and more than 50% in Q4. This has been supported by the acquisition and successful integration of EI Design, market-based approach enabling, cross-sell and upselling these solutions to customers across business segments.   
   

   Dividend Declaration:   

   The Board of Directors have recommended a dividend of Rs 20 (200%) per equity share of face value of Rs 10/- each for the financial year 2022-23, subject to the approval of the Members at the ensuing Annual General Meeting (AGM) of the Company. 
   

   Big Shark Investor:   

   Ace investor Mukul Mahavir Agarwal holds about 4.46% stake in the company.  
   

   Stock Movement:   

   The stock is currently trading higher by over 5% at Rs 955 on NSE. The stock had touched an intra-day high of Rs 986.95 earlier in the day. On YTD basis the stock is up by 15.64%.