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    Buy Mastek, target price Rs 2280: AnandRathi

    Synopsis

    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.

    BuyThinkStock Photos
    Promoters held 37.28 per cent stake in the company as of 30-Sep-2022, while FIIs owned 8.01 per cent, DIIs 3.73 per cent.
    AnandRathi has buy call on Mastek with a target price of Rs 2280. The current market price of Mastek is Rs 1635.

    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.

    Mastek key Products/Revenue Segments include I T Services for the year ending 31-Mar-2022.

    Financials
    For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 632.21 Crore, up 6.07 % from last quarter Total Income of Rs 596.01 Crore and up 16.72 % from last year same quarter Total Income of Rs 541.64 Crore. Company has reported net profit after tax of Rs 86.20 Crore in latest quarter.

    The company’s top management includes Mr.S Sandilya, Mr.Ashank Desai, Ms.Priti Rao, Mr.Atul Kanagat, Mr.Rajeev Grover, Mr.Ketan Mehta. Company has Walker Chandiok & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 3 Crore shares outstanding.

    Investment Rationale
    The company is now stabilizing with drags in healthcare behind, Metasoftech fully integrated from Q3, raising the US contribution to ~27%, and cross-currency turning supportive. While Q3 would be stable, growth is likely to improve from Q4. With annual increments and the worst of attrition behind, EBITDA margins should improve gradually.

    Promoter/FII Holdings
    Promoters held 37.28 per cent stake in the company as of 30-Sep-2022, while FIIs owned 8.01 per cent, DIIs 3.73 per cent.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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