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Mastek

NSEI:MASTEK
Snowflake Description

Solid track record with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MASTEK
NSEI
₹11B
Market Cap
  1. Home
  2. IN
  3. Software
Company description

Mastek Limited, together with its subsidiaries, provides enterprise technology solutions worldwide. The last earnings update was 4 days ago. More info.


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MASTEK Share Price and Events
7 Day Returns
3.1%
NSEI:MASTEK
2.6%
IN IT
0.8%
IN Market
1 Year Returns
-22.9%
NSEI:MASTEK
19.3%
IN IT
-0.7%
IN Market
MASTEK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Mastek (MASTEK) 3.1% 6.3% 10.2% -22.9% 217.4% 162.4%
IN IT 2.6% 4.3% 8.9% 19.3% 49% 80.2%
IN Market 0.8% 2.1% 5.8% -0.7% 41.2% 72.5%
1 Year Return vs Industry and Market
  • MASTEK underperformed the IT industry which returned 19.3% over the past year.
  • MASTEK underperformed the Market in India which returned -0.7% over the past year.
Price Volatility
MASTEK
Industry
5yr Volatility vs Market

Value

 Is Mastek undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Mastek to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Mastek.

NSEI:MASTEK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 16.7%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:MASTEK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.054 (1 + (1- 35%) (6.23%))
1.065
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.07
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.065 * 8.6%)
16.71%

Discounted Cash Flow Calculation for NSEI:MASTEK using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Mastek is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:MASTEK DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 16.71%)
2019 475.00 Analyst x1 406.99
2020 600.00 Analyst x1 440.49
2021 675.00 Analyst x1 424.61
2022 743.67 Est @ 10.17% 400.83
2023 813.48 Est @ 9.39% 375.68
2024 885.35 Est @ 8.84% 350.33
2025 960.16 Est @ 8.45% 325.54
2026 1,038.71 Est @ 8.18% 301.75
2027 1,121.71 Est @ 7.99% 279.21
2028 1,209.86 Est @ 7.86% 258.03
Present value of next 10 years cash flows ₹3,563.45
NSEI:MASTEK DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹1,209.86 × (1 + 7.55%) ÷ (16.71% – 7.55%)
₹14,206.06
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹14,206.06 ÷ (1 + 16.71%)10
₹3,029.78
NSEI:MASTEK Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹3,563.45 + ₹3,029.78
₹6,593.23
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹6,593.23 / 23.98
₹274.93
NSEI:MASTEK Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:MASTEK represents 1.00097x of BSE:523704
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00097x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 274.93 x 1.00097
₹275.20
Value per share (INR) From above. ₹275.20
Current discount Discount to share price of ₹463.85
= -1 x (₹463.85 - ₹275.20) / ₹275.20
-68.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Mastek is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Mastek's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Mastek's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:MASTEK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹42.61
BSE:523704 Share Price ** BSE (2019-04-18) in INR ₹463.4
India IT Industry PE Ratio Median Figure of 84 Publicly-Listed IT Companies 16.19x
India Market PE Ratio Median Figure of 2,738 Publicly-Listed Companies 16.33x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Mastek.

NSEI:MASTEK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:523704 Share Price ÷ EPS (both in INR)

= 463.4 ÷ 42.61

10.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mastek is good value based on earnings compared to the IN IT industry average.
  • Mastek is good value based on earnings compared to the India market.
Price based on expected Growth
Does Mastek's expected growth come at a high price?
Raw Data
NSEI:MASTEK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
9.1%per year
India IT Industry PEG Ratio Median Figure of 21 Publicly-Listed IT Companies 1.32x
India Market PEG Ratio Median Figure of 584 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

NSEI:MASTEK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.88x ÷ 9.1%

1.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mastek is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Mastek's assets?
Raw Data
NSEI:MASTEK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹300.00
BSE:523704 Share Price * BSE (2019-04-18) in INR ₹463.4
India IT Industry PB Ratio Median Figure of 108 Publicly-Listed IT Companies 1.36x
India Market PB Ratio Median Figure of 3,628 Publicly-Listed Companies 1.11x
NSEI:MASTEK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:523704 Share Price ÷ Book Value per Share (both in INR)

= 463.4 ÷ 300.00

1.54x

* Primary Listing of Mastek.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mastek is overvalued based on assets compared to the IN IT industry average.
X
Value checks
We assess Mastek's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Mastek has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Mastek expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Mastek expected to grow at an attractive rate?
  • Mastek's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Mastek's earnings growth is positive but not above the India market average.
  • Mastek's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:MASTEK Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:MASTEK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 9.1%
NSEI:MASTEK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 11.7%
India IT Industry Earnings Growth Rate Market Cap Weighted Average 9.5%
India IT Industry Revenue Growth Rate Market Cap Weighted Average 9.4%
India Market Earnings Growth Rate Market Cap Weighted Average 18.5%
India Market Revenue Growth Rate Market Cap Weighted Average 11.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:MASTEK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 weeks ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:MASTEK Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 13,363 889 1,217 2
2020-03-31 11,689 788 1,108 2
NSEI:MASTEK Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 10,580 1,015
2018-12-31 9,898 935
2018-09-30 9,343 854
2018-06-30 8,757 778
2018-03-31 8,172 641 700
2017-12-31 7,748 657
2017-09-30 6,914 594
2017-06-30 6,188 492
2017-03-31 5,602 429 324
2016-12-31 5,063 283
2016-09-30 5,180 179
2016-06-30 5,237 129

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Mastek's earnings are expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).
  • Mastek's revenue is expected to grow by 11.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:MASTEK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 weeks ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Mastek Company Filings, last reported 2 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:MASTEK Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 48.40 48.40 48.40 1.00
2020-03-31 44.10 44.10 44.10 1.00
NSEI:MASTEK Past Financials Data
Date (Data in INR Millions) EPS *
2019-03-31 42.61
2018-12-31 39.35
2018-09-30 36.05
2018-06-30 32.94
2018-03-31 29.74
2017-12-31 28.05
2017-09-30 25.39
2017-06-30 21.11
2017-03-31 13.96
2016-12-31 12.25
2016-09-30 7.78
2016-06-30 5.66

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Mastek is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Mastek's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Mastek has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Mastek performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Mastek's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Mastek has delivered over 20% year on year earnings growth in the past 5 years.
  • Mastek's 1-year earnings growth exceeds its 5-year average (45% vs 28.6%)
  • Mastek's earnings growth has exceeded the IN IT industry average in the past year (45% vs 24.5%).
Earnings and Revenue History
Mastek's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Mastek Company Filings, last reported 2 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:MASTEK Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 10,579.90 1,014.70
2018-12-31 9,897.90 934.60 144.20
2018-09-30 9,343.00 853.70 144.20
2018-06-30 8,757.00 777.60
2018-03-31 8,172.10 699.60 144.20
2017-12-31 7,747.97 657.50 91.23
2017-09-30 6,914.17 593.90 91.23
2017-06-30 6,188.17 492.30 91.23
2017-03-31 5,601.60 324.10 91.40
2016-12-31 5,063.02 283.25 -90.28
2016-09-30 5,179.72 178.85 -14.48
2016-06-30 5,236.62 128.95 61.62
2016-03-31 5,269.32 137.45 100.42
2015-12-31 1,872.60 330.67 -568.60
2015-09-30 3,181.30 409.77 -327.40
2015-06-30 9,160.40 213.10 1,948.30
2015-03-31 5,210.40 364.77
2014-12-31 9,638.83 226.06 2,670.43
2014-09-30 9,356.73 322.46 2,462.33
2014-06-30 9,250.43 455.56 2,351.93
2014-03-31 4,096.76 306.51
2013-12-31 9,430.32 499.43 2,377.41
2013-09-30 9,287.12 391.63 2,469.51
2013-06-30 9,180.32 305.93 2,503.51
2013-03-31 8,931.74 565.83 2,374.73
2012-12-31 8,430.20 433.50 2,331.85
2012-09-30 7,923.70 342.70 2,196.95
2012-06-30 7,335.16 5.00 2,129.73

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Mastek has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Mastek used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
  • Mastek has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Mastek's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Mastek has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Mastek's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Mastek's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Mastek is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Mastek's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Mastek's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Mastek Company Filings, last reported 2 weeks ago.

NSEI:MASTEK Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 7,164.00 692.10 2,259.80
2018-12-31 6,981.70 41.40 3,044.70
2018-09-30 6,981.70 41.40 3,044.70
2018-06-30 5,492.80 535.20 2,824.20
2018-03-31 5,492.80 699.90 2,054.30
2017-12-31 4,665.90 623.40 2,244.30
2017-09-30 4,665.90 623.40 2,244.30
2017-06-30 3,486.01 655.31 1,492.75
2017-03-31 4,690.60 655.30 1,527.40
2016-12-31 3,294.50 1.30 1,380.50
2016-09-30 3,294.50 1.30 1,380.50
2016-06-30 3,193.29 4.80 1,198.46
2016-03-31 3,193.29 4.80 1,198.46
2015-12-31 3,209.10 5.60 1,299.70
2015-09-30 3,209.10 5.60 1,299.70
2015-06-30 5,958.50 288.00 2,142.50
2015-03-31 5,958.55 292.90 2,142.50
2014-12-31 5,808.60 13.50 1,735.00
2014-09-30 5,808.60 13.50 1,735.00
2014-06-30 5,601.90 18.85 1,711.33
2014-03-31 5,601.90 18.85 1,711.33
2013-12-31 5,806.50 12.20 2,506.50
2013-09-30 5,806.50 12.20 2,506.50
2013-06-30 5,329.14 16.06 1,590.45
2013-03-31 5,329.14 16.06 1,590.45
2012-12-31 5,356.10 5.80 1,347.40
2012-09-30 5,355.75 71.34 1,378.54
2012-06-30 5,355.75 71.34 1,378.54
  • Mastek's level of debt (9.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.3% vs 9.7% today).
  • Debt is well covered by operating cash flow (92.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 22.7x coverage).
X
Financial health checks
We assess Mastek's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Mastek has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Mastek's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.83%
Current annual income from Mastek dividends. Estimated to be 1.72% next year.
If you bought ₹2,000 of Mastek shares you are expected to receive ₹37 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Mastek's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • Mastek's dividend is below the markets top 25% of dividend payers in India (1.92%).
Upcoming dividend payment

Purchase Mastek before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:MASTEK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
India IT Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 1.6%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.3%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:MASTEK Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 8.30 1.00
2020-03-31 7.60 1.00
NSEI:MASTEK Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-04-16 8.500 1.826
2018-10-25 7.500 1.737
2018-04-18 6.000 1.146
2017-10-26 4.500 1.040
2017-05-25 3.500 1.203
2016-10-18 2.000 1.111
2016-04-20 2.500 1.853
2016-03-14 3.500 2.422
2016-01-14 2.500 2.027
2015-08-19 2.500 1.482
2015-01-22 4.250 1.490
2014-04-23 5.500 2.416
2014-01-23 3.500 1.759
2013-10-25 3.500 2.283
2013-06-12 3.000 2.380
2013-04-26 3.000 2.363
2012-07-27 0.000 0.000
2012-04-20 0.000 0.000
2012-01-19 0.000 0.000
2011-10-19 0.000 0.000
2011-08-29 0.000 0.000
2010-07-21 3.250 2.201
2009-10-01 10.000 3.183
2009-04-21 10.000 4.382

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Mastek's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (6.1x coverage).
X
Income/ dividend checks
We assess Mastek's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Mastek afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Mastek has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Mastek's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Owen
COMPENSATION ₹0
TENURE AS CEO 2.4 years
CEO Bio

Mr. John Timothy Owen has been Group Chief Executive Officer at Mastek Limited since November 01, 2016. Mr. Owen has been Group Chief Executive Officer of Mastek Inc. since February 9, 2017. He serves as Vice President of EMEA. Mr. Owen served as a Vice President of Worldwide Sales of TAZZ Networks, Inc. He has over 20 years experience in the telecommunications market and has held various sales, marketing and general management positions with Nortel Networks, Tricom Communications and Racal-Milgo. Mr. Owen has played senior sales and marketing roles in organizations like Serco, HP and Nortel over the last 25 years. In his last job at Serco, he was the Sales and Marketing Director for UK and Europe, where his responsibilities included handling the UK Government - Serco's largest customer. Prior to joining Radiant, Mr. Owen established Sycamore Networks' leadership in the deployment of service provider next generation intelligent optical network infrastructure. He has wide ranging European and global business experience in both the carrier and enterprise markets. Mr. Owen served as Vice President of Sales and Marketing of Radiant Networks PLC. Prior to Sycamore, he held numerous executive positions within Nortel Networks, served as Vice President carrier networks, BT. During his tenure at Nortel, Mr. Owen was responsible for aligning products to market demands, securing strategic wins to ensure long-term revenue growth and improving customer satisfaction levels. He served as Managing Director of EMEA at Sycamore Networks, an innovator in optical networking market. Mr. Owen has deep expertise in business development and has track record with the UK markets - especially the UK government market. He holds a BA in Business Studies and Marketing from Lancaster University, UK and holds a degree in Business Administration & Management from Stanford University.

CEO Compensation
  • Insufficient data for John to compare compensation growth.
  • John's remuneration is lower than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Mastek management team in years:

2.4
Average Tenure
45
Average Age
  • The tenure for the Mastek management team is about average.
Management Team

John Owen

TITLE
Group Chief Executive Officer
TENURE
2.4 yrs

Sudhakar Ram

TITLE
Vice Chairman & MD
COMPENSATION
₹9M
AGE
57

Abhishek Singh

TITLE
Group Chief Financial Officer
COMPENSATION
₹13M
AGE
39
TENURE
2.6 yrs

Dinesh Kalani

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹4M
TENURE
3.6 yrs

Maninder Puri

TITLE
Group Chief People Officer
AGE
45
TENURE
1.7 yrs

Hiren Shah

TITLE
Senior Vice President of Service Lines

Robert King

TITLE
Chief Executive Officer of Americas
TENURE
1.6 yrs

Prahlad Koti

TITLE
Managing Director of Mastek (UK) Limited
TENURE
2.4 yrs

Arun Agarwal

TITLE
Executive

Ken Milne

TITLE
Executive
Board of Directors Tenure

Average tenure and age of the Mastek board of directors in years:

6.3
Average Tenure
64.5
Average Age
  • The tenure for the Mastek board of directors is about average.
Board of Directors

Srinivasan Sandilya

TITLE
Non-Executive Chairman
COMPENSATION
₹3M
AGE
70

Sudhakar Ram

TITLE
Vice Chairman & MD
COMPENSATION
₹9M
AGE
57
TENURE
2.4 yrs

Joe Venkataraman

TITLE
Group Corporate Development Officer
COMPENSATION
₹15M

Ashank Desai

TITLE
Co-Founder & Non-Executive Director
COMPENSATION
₹2M
AGE
67
TENURE
36.8 yrs

Priti Rao

TITLE
Independent Non-Executive Director
COMPENSATION
₹2M
AGE
59
TENURE
8.3 yrs

Atul Kanagat

TITLE
Independent Non-Executive Director
COMPENSATION
₹2M
AGE
62
TENURE
6.3 yrs

Keith Bogg

TITLE
Non-Executive Independent Director
COMPENSATION
₹1M
AGE
70
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • Mastek insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
29. Mar 19 Sell Atul Kanagat Individual 28. Mar 19 28. Mar 19 -5,000 ₹426.91 ₹-2,134,550
14. Dec 18 Sell Ketan Mehta Individual 13. Dec 18 13. Dec 18 -125,000 ₹466.48 ₹-58,309,996
X
Management checks
We assess Mastek's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Mastek has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

With EPS Growth And More, Mastek (NSE:MASTEK) Is Interesting

So if you're like me, you might be more interested in profitable, growing companies, like Mastek (NSE:MASTEK). … Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. … Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth.

Simply Wall St -

What Kind Of Shareholder Owns Most Mastek Limited (NSE:MASTEK) Stock?

Generally speaking, as a company grows, institutions will increase their ownership. … Our analysis of the ownership of the company, below, shows that. … We can zoom in on the different ownership groups, to learn more about MASTEK

Simply Wall St -

Did Business Growth Power Mastek's (NSE:MASTEK) Share Price Gain of 216%?

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … We note that the 47% yearly (average) share price gain isn't too far from the EPS growth rate.

Simply Wall St -

Here's What Mastek Limited's (NSE:MASTEK) P/E Ratio Is Telling Us

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … How Do I Calculate Mastek's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

How Much Are Mastek Limited (NSE:MASTEK) Insiders Taking Off The Table?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … Mastek Insider Transactions Over The Last Year … In the last twelve months, the biggest single sale by an insider was when Ketan Mehta sold ₹58m worth of shares at a price of ₹466 per share

Simply Wall St -

What To Know Before Buying Mastek Limited (NSE:MASTEK) For Its Dividend

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Historically, Mastek Limited (NSE:MASTEK) has paid dividends to shareholders, and these days it yields 2.0%. … Let's dig deeper into whether Mastek should have a place in your portfolio.

Simply Wall St -

Does Mastek Limited's (NSE:MASTEK) Past Performance Indicate A Stronger Future?

Investors with a long-term horizong may find it valuable to assess Mastek Limited's (NSE:MASTEK) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. … Below is my commentary, albiet very simple and high-level, on how Mastek is currently performing. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 23%, indicating the rate at which MASTEK is growing has accelerated

Simply Wall St -

How Good Is Mastek Limited (NSE:MASTEK), When It Comes To ROE?

This article is for those who would like to learn about Return On Equity (ROE). … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.13 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Mastek Limited (NSE:MASTEK) Has Attractive Fundamentals

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Mastek Limited (NSE:MASTEK) due to its excellent fundamentals in more than one area. … MASTEK

Simply Wall St -

Mastek Limited (NSE:MASTEK): What’s In It For The Shareholders?

If you are currently a shareholder in Mastek Limited (NSE:MASTEK), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … What is free cash flow. … Mastek generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating.

Simply Wall St -

Company Info

Description

Mastek Limited, together with its subsidiaries, provides enterprise technology solutions worldwide. It provides business and technology services comprising application development, application support and maintenance, business intelligence and data warehousing, testing and assurance, digital commerce, agile consulting, and legacy modernization. Its services also cover software solutions and integration, and enterprise digital transformation. It serves customers in various sectors, such as retail, financial services, healthcare, and public-sector businesses in the United Kingdom, the United States, and India. Mastek Limited was founded in 1982 and is headquartered in Mumbai, India.

Details
Name: Mastek Limited
MASTEK
Exchange: NSEI
Founded: 1982
₹11,113,030,807
23,981,508
Website: http://www.mastek.com
Address: Mastek Limited
#106, SDF IV,
Seepz,
Mumbai,
Maharashtra, 400096,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 523704 Equity Shares Mumbai Stock Exchange IN INR 23. May 1995
NSEI MASTEK Equity Shares National Stock Exchange of India IN INR 23. May 1995
Number of employees
Current staff
Staff numbers
2,104
Mastek employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/20 12:46
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/04/16
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.