Mastek Ltd (MASTEK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Happiest Minds

Mastek

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Why is Mastek Ltd ?

High Management Efficiency with a high ROE of 19.82%

Company has a low Debt to Equity ratio (avg) at 0.05 times

Poor long term growth as Operating profit has grown by an annual rate 12.50% of over the last 5 years

Positive results in Dec 25

CASH AND CASH EQUIVALENTS(HY) Highest at Rs 521.76 cr
PBDIT(Q) Highest at Rs 145.59 cr.
PBT LESS OI(Q) Highest at Rs 120.30 cr.

With ROE of 13.8, it has a Attractive valuation with a 1.6 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -40.08%, its profits have risen by 3.5% ; the PEG ratio of the company is 3.6

High Institutional Holdings at 22.92%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -40.08% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mastek should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Mastek for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mastek

-40.08%

-1.19

33.82%

Sensex

-5.47%

-0.43

12.65%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.40%

EBIT Growth (5y)

12.50%

EBIT to Interest (avg)

23.05

Debt to EBITDA (avg)

0.87

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

1.36

Tax Ratio

24.50%

Dividend Payout Ratio

18.93%

Pledged Shares

Institutional Holding

22.92%

ROCE (avg)

70.09%

ROE (avg)

19.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.60

EV to EBIT

8.34

EV to EBITDA

7.27

EV to Capital Employed

1.64

EV to Sales

1.13

PEG Ratio

3.61

Dividend Yield

1.73%

ROCE (Latest)

19.51%

ROE (Latest)

13.77%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 521.76 cr

PBDIT(Q)

Highest at Rs 145.59 cr.

PBT LESS OI(Q)

Highest at Rs 120.30 cr.

PAT(Q)

Highest at Rs 108.35 cr.

EPS(Q)

Highest at Rs 34.97

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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Here's what is working for Mastek

Operating Profit (PBDIT) - Quarterly

Highest at Rs 145.59 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 120.30 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 108.35 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 34.97

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 521.76 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Mastek

Non Operating Income - Quarterly

Highest at Rs 20.89 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income