Buy Mastek; target of Rs 3030: Sharekhan

Sharekhan's research report on Mastek

Reported revenues stood at $104.6 million, up 2.9% q-o-q in CC terms, beating our estimates of 1.8% q-o-q growth in CC terms. EBITDA margin declined ~85 bps q-o-q to 15.3%, missing our estimates of 15.9%. The 12 months order backlog was Rs 2,290.9 crore up 7.1% q-o-q/ 5.6% y-o-y. Management expects growth in core business and core markets (UK and Europe) to stay extremely healthy in FY26.

Outlook

We maintain BUY rating with an unchanged PT of Rs. 3,030 (valued at 20xFY27 E EPS). At CMP, the stock trades at 18.6/15.3x FY26/27E EPS.