ICICI Direct recommended reduce rating on Mastek with a target price of Rs 1520 in its research report dated January 18, 2023.

The brokerage is of the view that management change in the US region may help it to grow stronger & achieve desired revenue mix.

The brokerage believes the structural growth story for the Indian IT sector remains intact.

The brokerage expects EBITDA margin to be in the range of 17-18% in the short to medium term, supportedby operating levers like utilisation improvement.

Anand Rathi is bullish on Mastek has recommended buy rating on the stock with a target price of Rs 2180 in its research report dated January 18, 2023.

Sharekhan recommended Hold rating on Mastek with a target price of Rs 1900 in its research report dated January 17, 2023.

HDFC Securities recommended reduce rating on Mastek with a target price of Rs 1800 in its research report dated January 17, 2023.

Anand Rathi retains its FY24e/FY25e EBIT but lowers other income leading to a ~4% cut in EPS.

"As part of the overall margin equation, there are efficiencies and the execution gross margin that we are focused on. It has improved from Q2 to Q3 but we want to make the right investments in capabilities in our sales teams as well as our overall ability to win larger deals and larger accounts. "

Mastek's consolidated net profit stood at Rs 83 crore in the year-ago period. Sequentially, the company's net profit fell 22 percent from Rs 86 crore in Q2 FY23.

“Ahead of the Budget, the 17,750-17,800 zone has become very crucial. From a short-term perspective, 17850, 17 900 and 17950 puts have seen a lot of additions. That means lower levels around 17900, 17930 for the day should act as a strong support. On the upside, if we see 18,000 strike price call, that is where the highest open interest is placed.”

However, Mastek clocked a 19.3% increase in the revenue from operations at Rs 658.7 crore during October-December 2022 period as against Rs 551.9 crore clocked in the year-ago period. Meanwhile, the operating EBITDA of the company stood at Rs 113.7 crore in Q3FY23, down 2.2% YoY

Mastek, incorporated in the year 1982, is a Small Cap company (having a market cap of Rs 4896.18 Crore) operating in IT Software sector.

ICICI Direct recommended hold rating on Mastek with a target price of Rs 1800 in its research report dated October 23, 2022.

Sharekhan recommended Hold rating on Mastek with a target price of Rs 1900 in its research report dated October 21, 2022.

“Hiring new trainees, training them, putting them on the job reduces the impact of attrition and that is being seen. However, it is still at the higher end. A good sign is this time it seems to be stabilising or going down but we need to still work on to see that attrition comes to a normal level. Otherwise, the impact of attrition on wages and margins will remain,” says Ashank Desai

With the British pound tumbling to its all-time low against the US dollar amid a gloomy outlook for Europe, analysts expect the earnings of companies with business interests in the region to be under pressure.

“Across the sectors, we are sensing that whether it be SME, whether it be medium size, whether it be large corporates, all companies across the value chain are saying that the demand momentum is extremely strong. So manufacturing remains a medium to long-term theme and after a long time, apart from the consumption engine, the manufacturing engine is firing in my view.”

“Across the sectors, we are sensing that whether it be SME, whether it be medium size, whether it be large corporates, all companies across the value chain are saying that the demand momentum is extremely strong. So manufacturing remains a medium to long-term theme and after a long time, apart from the consumption engine, the manufacturing engine is firing in my view.”

The Nifty Bank index closed 0.53 per cent down at 39455.9.

The Nifty Realty index closed 0.08 per cent up at 473.6.

The Nifty IT index closed 0.32 per cent up at 27832.4.

The Nifty Auto index closed 1.15 per cent down at 13072.65.

The Nifty Pharma index closed 0.78 per cent up at 12696.3.

The Nifty Auto index was trading 0.63 per cent down at 13141.55.

The Nifty Bank index was trading 0.5 per cent down at 39466.9.

Kacholia, known for picking multibagger stocks in the midcap and smallcap space, bought the stock of the pesticides and agrochemicals company at Rs 940.88 per share on Tuesday.

Kacholia first entered the stock in September 2020 by picking up a 2.9 per cent stake, Trendlyne data shows. In the June quarter, he had sold 0.2 per cent stake. Mastek shares ended 4 per cent higher today at Rs 2,185.65 on BSE. Having rallied nearly 700 per cent in the last five years, the stock has lost over 28 per cent of its value year-to-date.

ICICI Direct recommended hold rating on Mastek with a target price of Rs 2000 in its research report dated July 23, 2022.

Anand Rathi is bullish on Mastek has recommended buy rating on the stock with a target price of Rs 2710 in its research report dated July 21, 2022.

Kacholia now holds a 1.42 per cent stake in La Opala against a 1.05 per cent stake in the March 2022 quarter. Following the news, the stock was trading around 6 per cent higher at Rs 291.15 on NSE.Having fallen over 37 per cent from its 52-week high of Rs 456.50, the stock has gained about 17 per cent in the last one-month period.

“Equity markets are all about being optimistic. If you are pessimistic, please buy gold and keep it below your pillow. If you are optimistic, then only come into the equity market. So it is not only about being a fund manager, I think it is about being an investor. In the last 25 years, only those who have been optimistic and positive have created wealth. The rest are all waiting for the best time to invest.”

Sharekhan recommended Hold rating on Mastek with a target price of Rs 2400 in its research report dated July 01, 2022.

"Markets are largely taking cues from the global markets, in absence of any major domestic event. And, going ahead, the US Fed chairman's speech and China's interest rate decision would be important triggers for the markets. On the domestic front, the COVID trend and the progress of the monsoon will also be in focus. We reiterate our negative view on markets and suggest continuing with the “sell on rise” approach, said Mr. Ajit Mishra, VP - Research, Religare Broking.

“I will keep pharma and IT on radar. IT is looking more promising than pharma so on a ranking scale, IT first and then pharma next but pharma needs to confirm from a market perspective on the price charts that it is reversing from there. Nifty Smallcap is nearing support at about 8,200. If it tries to hold then we can explore possibilities out there but that will be just a trading play and not an investment play.”

“We have been guiding generally to say that we have been growing faster than the industry over the last quite a few years and we will continue that growth above the industry rate. That is the kind of rate we are committed to and we have not changed any of that.”

“We continue to remain below the same positions in IT we had somewhere late last year but otherwise, in this year, we have not changed much. It is not that we will not change; we keep evaluating depending on the valuations and how they evolve, but so far. we have not changed that.”

On average, IT stocks have fallen 30% from their yearly highs due to worries about a recession in the US, sell-off on the Nasdaq, steep valuations after the recent run-up and the impact of wage inflation on their operating profitability

Anand Rathi is bullish on Mastek has recommended buy rating on the stock with a target price of Rs 3400 in its research report dated April 22, 2022.

ICICI Direct recommended hold rating on Mastek with a target price of Rs 3100 in its research report dated April 22, 2022.