Sharekhan has given Hold recommendation for Mastek with a target price of Rs. 1900 in its research report issued on Oct 21, 2022

Sharekhan’s research report on Mastek

Mastek reported Q2FY23 Revenue of $78.1 million which was up 20.4% on YoY basis in constant currency (CC) and 10.7% q-o-q- in CC led by positive momentum in existing business and acquisition of MST Solutions during the quarter while EBITDA at 17.2% margin declined sharply by 200 bps. The management stated that acquisition of MST Solutions is off to a terrific start strengthening their US business and have indicated that they are seeing significant potential in the growing Salesforce Customer 360 ecosystem particularly in Healthcare and State & Local Government industries. The management indicated that clients are preferring larger and integrated deals through strategic partnerships as demand environment features some element of caution due to macro-overhang. The management is optimistic on the UK public sector, healthcare vertical in the US and Manufacturing vertical.


We continue to maintain Hold on Mastek with revised PT of Rs. 1900 given continued weakness in the Healthcare & Lifescience vertical, margin pressure and macro-overhang in its key geographies, which offsets benefit of healthy deal wins, logo additions and synergy benefits and improved ability to offer integrated solutions led by MST acquisition.

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