Anand Rathi's research report on Mastek
Mastek bounced back in Q4 with 4.9% sequential growth and a $194m order backlog, up 25% y/y. Management spoke about sustaining high growth till FY25 while reducing exposure to the UK and government businesses. It will achieve this by scaling up its Enterprise business in the US (new leadership) and Europe, and by acquiring some targets (revenue ~$35m) in the US (in FY23). FY23 fresher hiring targets are up 50% (to 1,000) to support growth. EBITDA margins to be maintained above 20% in FY23.
Outlook
We largely retain our FY23e/FY24e, but tweak our target to Rs.3,400 (23x FY24e, a 35% discount to LTI). We retain a Buy recommendation.
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