Sharekhan's research report on Mastek
Q4FY22 revenue growth improved to 5.3% q-o-q on CC terms after two successive quarters of soft performance, but EBIT margin missed the mark. Q4 saw strong addition of clients (including two Fortune-1000 clients) and strong order intake. Mastek aspires to clock $1 billion in annual revenue in the early part of the second half of the decade (3x growth from current level) by focusing on its three strategic priorities – 1) Growth markets and verticals; 2) Digital and Cloud services and partnerships and 3) Digital talent, outcome-based delivery and M&A opportunities. Mastek is well placed to deliver strong revenue growth in FY2023/FY2024, backed by continued growth in UK public sector and Oracle Cloud, solid order booking, scaling up of growth in private sector and US business and strategic partnerships.
We maintain a Buy on Mastek with an unchanged PT of Rs. 3,840 given strong revenue growth visibility, consistency in Fortune 1000 logo addition, and M&A opportunities that would enhance capability.
At 13:58 hrs Mastek was quoting at Rs 2,831.40, up Rs 37.40, or 1.34 percent.
It has touched an intraday high of Rs 2,875.45 and an intraday low of Rs 2,796.05.
It was trading with volumes of 5,281 shares, compared to its thirty day average of 7,456 shares, a decrease of -29.17 percent.
In the previous trading session, the share closed down 0.51 percent or Rs 14.35 at Rs 2,794.00.
The share touched its 52-week high Rs 3,666.00 and 52-week low Rs 1,363.50 on 19 October, 2021 and 23 April, 2021, respectively.
Currently, it is trading 22.77 percent below its 52-week high and 107.66 percent above its 52-week low.
Market capitalisation stands at Rs 8,499.30 crore.
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