Sharekhan's research report on Mastek
The recent restructuring activity in NHS (UK) would moderate growth of UK public sector in the near term, given delay in decision making. Further, ramp-up of deals won under Home Office was affected by supply-side challenges. Mastek has qualified to bid for deals under the GBP 4 billion digital transformation framework by Home Office. Mastek is expected to win deals under this framework, given its strong relationship with the UK government and enhanced capabilities. Client-related issues along with adverse cross-currency headwinds are expected to impact its growth momentum in Q1FY2023. Margin is expected to stay under pressure, given appreciation of Rupee against GBP and supply-side challenges.
We downgrade our rating on Mastek to Hold from Buy with a revised PT of Rs. 2,400, given near-term challenges in its large customers, margin pressure, and anticipated reduction in tech spends due to the inflationary environment.
At 15:20 hrs Mastek was quoting at Rs 2,110.65, up Rs 21.25, or 1.02 percent.
It has touched an intraday high of Rs 2,123.20 and an intraday low of Rs 2,071.30.
It was trading with volumes of 2,091 shares, compared to its thirty day average of 5,634 shares, a decrease of -62.89 percent.
In the previous trading session, the share closed down 2.44 percent or Rs 52.35 at Rs 2,089.40.
The share touched its 52-week high Rs 3,666.00 and 52-week low Rs 1,851.00 on 19 October, 2021 and 20 June, 2022, respectively.
Currently, it is trading 42.43 percent below its 52-week high and 14.03 percent above its 52-week low.
Market capitalisation stands at Rs 6,341.19 crore.
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