Amit Chandra, senior research analyst at BP Wealth told CNBC-TV18, "In FY15, Mastek did a topline of USD 84 million and we are expecting a growth of 10 percent based on that we are getting an earning per share (EPS) of 19.5 for FY17. We have taken a fair assumption of EBITA margin of around 10-12 percent. Based on the midcap valuation of 9 price to earnings (PE) we are getting a fair value of Rs 174 for Mastek Limited. So Rs 174 is our target price."
"Mastek is holding 13.8 percent stake in Majesco US and that value of 13.8 percent stake according to the Majesco US valuations comes to around Rs 142 crore. Price per share comes to Rs 63 per share. So the fair value of Mastek comes to around Rs 230," he added.
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