3796 Investors following Mastek. Share this News with them.
0
Like this story, share it with millions of investors on M3
Buy Mastek, target of Rs 287: PINC Research
PINC Research has recommended a buy rating on Mastek with a revised 12 month price target of Rs 287. Mastek reported a soft quarter as net sales in USD terms slid 4.5% QoQ to USD 57.9 million due to a 7% depreciation of the GBP against the USD. The quarter enabled a net profit increase of 6.8% to Rs 412 million.
PINC Research has recommended a buy rating on Mastek with a revised 12 month price target of Rs 287 in its October 14, 2008 research report. "Mastek Ltd. (Mastek) reported a soft quarter as net sales in USD terms slid 4.5% QoQ to USD 57.9 million due to a 7% depreciation of the GBP against the USD. The quarter enabled a net profit increase of 6.8% to Rs 412 million."
"At the CMP of Rs 225, Mastek is trading at a P/E of 3.9x and EV/EBIDT of 2.3x its FY09E. While a weak INR should help it post robust growth in FY09, the growth rates would be under pressure and thus FY10 earnings growth could be capped, though it is too early so say that conclusively. While we have downgraded our growth outlook, we still expect Mastek to post a double digit earnings CAGR (FY08-10), which in the back drop of the recent correction in stock price leaves room for a marked upside, despite a sectoral de-rating and earning uncertainty. Hence, we maintain our 'BUY' recommendation with a revised 12 month price target of Rs 287. (prev. Rs 514)," says PINC's research report.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click on the attachment......
