Sharekhan has given Buy recommendation for Mastek with a target price of Rs. 2950 in its research report issued on Jul 20, 2021
Sharekhan’s research report on Mastek
Q1FY22 beat our estimates on all fronts; Further, quarter witnessed rise in order backlog (up 54% y-o-y), robust deal pipeline, aggressive employee additions, new logo additions and better cash conversion. UK public sector vertical to maintain growth momentum given strong client mining and new logo additions, while UK private sector vertical’s growth would recover given cross-sell opportunities and a new leadership. Mastek is expected to clock an earnings CAGR of 24% over FY2021-FY2024E, led by strong growth in the UK public sector, strong deal wins, new logo additions, investments on capabilities and traction for digital and cloud technologies.
We maintain a Buy on Mastek with a revised PT of Rs. 2,950 given its strong revenue growth potential, robust deal pipeline and strong demand.