10+ Mphasis Interview Questions and Answers

Private equity invests in established companies while venture capital invests in startups.

• Private equity firms invest in mature companies with a proven track record.

• Venture capital firms invest in startups with high growth potential.

• Private equity firms typically acquire a controlling stake in the company they invest in.

• Venture capital firms usually take a minority stake in the company.

• Private equity firms focus on generating returns through operational improvements and cost-...read more

Annual reports contain more than just financials, such as management discussion and analysis, corporate governance, and sustainability reports.

• Management discussion and analysis provides insights into the company's strategy, operations, and future plans.

• Corporate governance section highlights the company's policies and practices related to ethical conduct, board composition, and executive compensation.

• Sustainability reports showcase the company's efforts towards environmental...read more

Fundamental analysis is a method of evaluating a security by examining its intrinsic value.

• It involves analyzing financial and economic data to determine the underlying value of a security

• The objective is to identify undervalued or overvalued securities

• Factors considered include financial statements, industry trends, management quality, and macroeconomic conditions

• Example: analyzing a company's revenue growth, profit margins, and debt levels to determine its true value

• The goa...read more

Enterprise Value is the total value of a company's equity and debt.

• Enterprise Value = Market Capitalization + Total Debt - Cash and Cash Equivalents

• It is used to determine the total value of a company, including its debt

• EV is often used in financial analysis to compare companies with different capital structures

• Example: If a company has a market cap of $100 million, total debt of $50 million, and cash and cash equivalents of $10 million, its EV would be $140 million

The interview covered topics such as non-cash expenses, capital markets, share stock vs share split, GST, and WACC.

• Non-cash expenses are expenses that do not involve the payment of cash, such as depreciation and amortization.

• Capital markets are where financial securities are bought and sold, such as stocks and bonds.

• Share stock refers to the issuance of new shares of stock, while share split refers to dividing existing shares into multiple shares.

• GST (Goods and Services Tax) ...read more

The strategy to come out of private equity involves identifying potential buyers, preparing the company for sale, and negotiating the terms of the sale.

• Identify potential buyers through market research and networking

• Prepare the company for sale by improving financials, streamlining operations, and addressing any legal or regulatory issues

• Negotiate the terms of the sale, including price, payment structure, and any contingencies

• Consider alternative exit strategies, such as an I...read more

EPS is earnings per share, while P/E ratio is the price-to-earnings ratio.

• EPS is a company's net profit divided by the number of outstanding shares.

• P/E ratio is the current market price of a share divided by its EPS.

• P/E ratio is used to determine if a stock is overvalued or undervalued.

• A high P/E ratio may indicate that investors have high expectations for future growth.

• A low P/E ratio may indicate that investors have low expectations for future growth.

Corporate actions are events initiated by a public company that can affect its stock price or ownership structure.

• Corporate actions include dividends, stock splits, mergers, acquisitions, spin-offs, and rights issues.

• These actions can impact shareholders by changing the value of their investments or the number of shares they own.

• Investors need to stay informed about corporate actions to make informed decisions about their investments.

Capital repayment refers to the process of paying back the original amount borrowed in a loan or investment.

• Capital repayment is the return of the initial amount borrowed or invested.

• It does not include any interest or additional fees.

• Common examples include paying off a mortgage or returning the principal amount of a bond.

• Capital repayment reduces the outstanding balance of a loan or investment.