Buy Mastek; target of Rs 3030: Sharekhan

Sharekhan is bullish on Mastek has recommended buy rating on the stock with a target price of Rs 3030 in its research report dated March 21, 2025.

Broker Research

March 24, 2025 / 12:10 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Sharekhan's research report on Mastek

Mastek expects a 40-50% growth in UK healthcare revenue next year, driven by the new government’s modernisation plan and increased AI and data investments, despite short-term decision-making delays stemming from the NHS England merger with the DHSC. Company is streamlining its North American operations, increasing Data & AI investments, and targeting both tier-2 ($1-10 billion revenue) and Fortune 500 customers along with focus on Healthcare and Manufacturing verticals. Margins are expected to face short-term pressure from new UK healthcare contracts and North America reorganization costs, but AI efficiencies and refined go-to-market strategy aims to restore profitability in 12-36 months.

Outlook

We reiterate Buy with unchanged PT of Rs 3,030. At CMP, the stock trades at 19.9/18/15.3x its FY25/26/27E EPS.

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