Mastek shares rise 2% as Macquarie maintains 'outperform', sees 17% upside

Mastek shares have gained just over a percent since the start of the year.

Shares of Mastek rose as much as 2 percent to Rs 2,893 in the morning trade on October 31 after Macquarie maintained an 'outperform' rating and raised the target price of the counter following the company's second quarter earnings.

With a price target of Rs 3,320, implying an upside potential of 17.3 percent from the last closing price of Rs 2,830 on the National Stock Exchange. Mastek shares have gained just over a percent since the start of the year.

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Macquarie said that the company's recent acquisitions delivered positive results. The company’s Q2 results were its best since Q4FY23, with North American revenue rising 17.3 percent QoQ and 11.1 percent YoY in US dollar terms. EBITDA also grew by 125 basis points QoQ and 40 basis points YoY, even with the partial impact of wage hikes.

Revenue from operations rose by 13.3 percent YoY to Rs 867.4 crore, up from Rs 765.5 crore in the prior fiscal's corresponding quarter. Operating EBITDA increased 16.3 percent YoY to Rs 143.1 crore, compared to Rs 123 crore a year earlier, with the EBITDA margin improving to 16.5 percent from 15 percent.

During Q2 FY25, Mastek added 14 new clients, bringing the total active clients to 380, down from 391 in Q1 FY25, reflecting deeper account mining and increased revenue per client.

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