Daljeet S Kohli, Head of Research at Indianivesh Securities feels that Mastek may go to Rs 554.
Daljeet S Kohli, Head of Research at Indianivesh Securities told CNBC-TV18, "Mastek has already doubled in this last one year but it is still a pick because we feel there is still scope of another 100 percent move from here onwards. Basic reason is that the demerger of the business and the NYSE listing of Majesco, which is what our thesis at the time of Rs 140 when we first recommended this stock was there. So I think that is all playing out well."
He further added, "I guess the valuation that they will get at Majesco that will drive the further rerating onwards and further the stock price can move up. We are expecting on a very conservative basis because the nearest competitor, the marketcap to sell ratio for Majesco business is still half of what we are talking. So if that goes up obviously then the price cannot go even further. As of now we have now put in a target of Rs 554 but I think that will depend on Majesco’s valuation."
Disclosure: Analyst holds Pennar Industries.