Mastek
Market Cap
₹4.2b
Last Updated
2020/03/28 13:12 UTC
Data Sources
Company Financials +
Executive Summary
Mastek Limited, together with its subsidiaries, provides enterprise technology solutions.
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued with excellent balance sheet and pays a dividend.
Share Price & News
How has Mastek's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MASTEK's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-15.9%
MASTEK
2.1%
IN IT
-2.9%
IN Market
1 Year Return
-61.2%
MASTEK
-15.1%
IN IT
-29.3%
IN Market
Return vs Industry: MASTEK underperformed the Indian IT industry which returned -15.3% over the past year.
Return vs Market: MASTEK underperformed the Indian Market which returned -29.2% over the past year.
Shareholder returns
| MASTEK | Industry | Market | |
|---|---|---|---|
| 7 Day | -15.9% | 2.1% | -2.9% |
| 30 Day | -58.5% | -18.1% | -26.5% |
| 90 Day | -57.4% | -18.5% | -28.5% |
| 1 Year | -59.4%-61.2% | -12.5%-15.1% | -27.9%-29.3% |
| 3 Year | 2.3%-5.0% | 35.7%27.3% | -15.4%-20.0% |
| 5 Year | -54.8%-59.3% | 31.0%18.5% | -3.3%-8.3% |
Price Volatility Vs. Market
How volatile is Mastek's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
What Is Mastek's (NSE:MASTEK) P/E Ratio After Its Share Price Tanked?1 week ago | Simply Wall St
Mastek Limited's (NSE:MASTEK) Could Be A Buy For Its Upcoming Dividend2 weeks ago | Simply Wall St
Introducing Mastek (NSE:MASTEK), A Stock That Climbed 78% In The Last Three YearsValuation
Is Mastek undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MASTEK (₹172.15) is trading below our estimate of fair value (₹432.05)
Significantly Below Fair Value: MASTEK is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MASTEK is good value based on its PE Ratio (4x) compared to the IT industry average (7x).
PE vs Market: MASTEK is good value based on its PE Ratio (4x) compared to the Indian market (9.2x).
Price to Earnings Growth Ratio
PEG Ratio: MASTEK is good value based on its PEG Ratio (0.3x)
Price to Book Ratio
PB vs Industry: MASTEK is good value based on its PB Ratio (0.5x) compared to the IN IT industry average (0.7x).
Next Steps
Future Growth
How is Mastek forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
12.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MASTEK's forecast earnings growth (12.3% per year) is above the savings rate (6.5%).
Earnings vs Market: MASTEK's earnings (12.3% per year) are forecast to grow slower than the Indian market (19.8% per year).
High Growth Earnings: MASTEK's earnings are forecast to grow, but not significantly.
Revenue vs Market: MASTEK's revenue (18.7% per year) is forecast to grow faster than the Indian market (9.1% per year).
High Growth Revenue: MASTEK's revenue (18.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MASTEK's Return on Equity is forecast to be low in 3 years time (14.1%).
Next Steps
Past Performance
How has Mastek performed over the past 5 years?
34.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MASTEK has high quality earnings.
Growing Profit Margin: MASTEK's current net profit margins (10.2%) are higher than last year (9.4%).
Past Earnings Growth Analysis
Earnings Trend: MASTEK's earnings have grown significantly by 34.6% per year over the past 5 years.
Accelerating Growth: MASTEK's earnings growth over the past year (9.4%) is below its 5-year average (34.6% per year).
Earnings vs Industry: MASTEK earnings growth over the past year (9.4%) exceeded the IT industry 7.2%.
Return on Equity
High ROE: MASTEK's Return on Equity (12.5%) is considered low.
Next Steps
Financial Health
How is Mastek's financial position?
Financial Position Analysis
Short Term Liabilities: MASTEK's short term assets (₹5.2B) exceed its short term liabilities (₹1.6B).
Long Term Liabilities: MASTEK's short term assets (₹5.2B) exceed its long term liabilities (₹1.0B).
Debt to Equity History and Analysis
Debt Level: MASTEK's debt to equity ratio (8.2%) is considered satisfactory.
Reducing Debt: MASTEK's debt to equity ratio has increased from 0.01% to 8.2% over the past 5 years.
Debt Coverage: MASTEK's debt is well covered by operating cash flow (157.3%).
Interest Coverage: MASTEK earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: MASTEK has a low level of unsold assets or inventory.
Debt Coverage by Assets: MASTEK's debt is covered by short term assets (assets are 7.7x debt).
Next Steps
Dividend
What is Mastek's current dividend yield, its reliability and sustainability?
4.64%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MASTEK's dividend (4.64%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).
High Dividend: MASTEK's dividend (4.64%) is in the top 25% of dividend payers in the Indian market (4.18%)
Stability and Growth of Payments
Stable Dividend: MASTEK's dividend payments have been volatile in the past 10 years.
Growing Dividend: MASTEK's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (18.8%), MASTEK's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MASTEK's dividends in 3 years are forecast to be well covered by earnings (18.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.4yrs
Average management tenure
CEO
John Owen
3.33s
Tenure
Mr. John Timothy Owen has been Group Chief Executive Officer at Mastek Limited and Mastek (UK) Ltd. Mr. Owen has been Group Chief Executive Officer of Mastek Inc. since February 9, 2017. He serves as Vice ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Vice Chairman & MD | 3.33yrs | ₹9.42m | 7.21% ₹302.0m | |
| Group Chief Financial Officer | 3.5yrs | ₹25.22m | 0.23% ₹9.5m | |
| Compliance Officer & Company Secretary | 4.5yrs | ₹3.60m | no data | |
| Group Chief Executive Officer | 3.33yrs | no data | no data | |
| Group Corporate Development Officer | no data | ₹15.03m | no data | |
| Group Chief Human Resources Officer | 2.58yrs | no data | no data | |
| Senior Vice President of Delivery of North America | no data | no data | no data | |
| Delivery Unit Head of BT & Health | no data | no data | no data | |
| Senior Vice President of Strategic Accounts | no data | no data | no data | |
| Head of Systems Group | no data | no data | no data |
3.4yrs
Average Tenure
46yo
Average Age
Experienced Management: MASTEK's management team is considered experienced (3.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Vice Chairman & MD | 3.33yrs | ₹9.42m | 7.21% ₹302.0m | |
| Group Corporate Development Officer | no data | ₹15.03m | no data | |
| Co-Founder & Non-Executive Director | 37.75yrs | ₹2.29m | 13.1% ₹548.3m | |
| Non-Executive Chairman | no data | ₹3.20m | 0.11% ₹4.5m | |
| Independent Non-Executive Director | 9.17yrs | ₹2.50m | 0.12% ₹5.1m | |
| Independent Director | 0.17yr | no data | no data | |
| Independent Non-Executive Director | 7.17yrs | ₹1.40m | 0.040% ₹1.7m |
7.2yrs
Average Tenure
64yo
Average Age
Experienced Board: MASTEK's board of directors are considered experienced (7.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Mastek Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Mastek Limited
- Ticker: MASTEK
- Exchange: NSEI
- Founded: 1982
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: ₹4.186b
- Shares outstanding: 24.29m
- Website: https://www.mastek.com
Number of Employees
Location
- Mastek Limited
- #106, SDF IV
- Seepz
- Mumbai
- Maharashtra
- 400096
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 523704 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | May 1995 |
| MASTEK | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | May 1995 |
Biography
Mastek Limited, together with its subsidiaries, provides enterprise technology solutions. It provides business and technology services comprising application development, business intelligence and analytics, digital commerce, application support and maintenance, testing and assurance, agile consulting, and legacy modernization. The company also provides data warehouse, system integration, and enterprise digital transformation services. It serves customers in various sectors, such as retail, financial services, healthcare, and public-sector businesses in India, the United Kingdom, and the United States. Mastek Limited was founded in 1982 and is based in Mumbai, India.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/28 13:12 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.