Sharekhan has given Buy recommendation for Mastek with a target price of Rs. 3840 in its research report issued on Apr 01, 2022
Sharekhan’s research report on Mastek
We expect Mastek’s revenue growth to accelerate in Q4FY22, as large deals ramp up, US business grows strongly and retail vertical recovers. EBITDA margin is likely to stay under pressure in near-term, owing to higher cost on backfilling attrition and retention. Deal win momentum with the UK government is expected continue in the medium term because of its strong qualified deal pipeline under the GBP 800 million framework, improved capabilities and rising spends on digital technologies. The company targets US revenue contribution to reach over 30% in the next three years from 18.5% currently, led by strong traction for D2X solutions, cross-selling/co-selling opportunities and improving deal sizes.
We maintain a Buy on Mastek with a PT of Rs. 3,840 given strong earnings growth potential, steady deal wins, logo additions and M&A opportunities.
At 11:02 hrs Mastek was quoting at Rs 3,359.95, up Rs 48.20, or 1.46 percent.
It has touched an intraday high of Rs 3,410.85 and an intraday low of Rs 3,341.10.
It was trading with volumes of 3,415 shares, compared to its thirty day average of 7,743 shares, a decrease of -55.90 percent.
In the previous trading session, the share closed down 0.21 percent or Rs 7.10 at Rs 3,311.75.
The share touched its 52-week high Rs 3,666.00 and 52-week low Rs 1,232.20 on 19 October, 2021 and 01 April, 2021, respectively.
Currently, it is trading 8.35 percent below its 52-week high and 172.68 percent above its 52-week low.
Market capitalisation stands at Rs 10,085.90 crore.