Sharekhan has given Buy recommendation for Mastek with a target price of Rs. 2404 in its research report issued on Jun 04, 2021
Sharekhan’s research report on Mastek
Strong growth momentum in the UK public sector would continue in FY2022E led by higher client mining, new logo additions, robust deal pipeline, improving deal sizes and possibilities to expand relationships to other departments. Management aims to maintain EBITDA margins at 20-22% (21.2% in FY2021) despite investments in technological capabilities and sales leadership team. Mastek is expected to clock a strong growth of 24% in FY2022E, led by strong growth momentum in UK public sector, strong deal wins, traction for Could technologies and strong recovery in the UK private business during H2FY2022.
We maintain a Buy on Mastek with a revised PT of Rs. 2,400, given strong earnings growth potential, improving order size and M&A opportunity.