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MAST

Mastek NSEI:MASTEK Stock Report

Last Price

₹2.05k

Market Cap

₹61.4b

7D

3.7%

1Y

-10.0%

Updated

25 Jun, 2022

Data

Company Financials +
MASTEK fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance6/6
Financial Health5/6
Dividends3/6

MASTEK Stock Overview

Mastek Limited, together with its subsidiaries, provides enterprise technology solutionsin India, the United Kingdom, Europe, the United States, the Middle East, and internationally.

Mastek Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Mastek
Historical stock prices
Current Share Price₹2,047.25
52 Week High₹3,669.00
52 Week Low₹1,850.70
Beta1.81
1 Month Change-15.08%
3 Month Change-32.81%
1 Year Change-10.04%
3 Year Change329.60%
5 Year Change643.10%
Change since IPO672.55%

Recent News & Updates

Jun 14
With EPS Growth And More, Mastek (NSE:MASTEK) Is Interesting

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

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

May 12
Does Mastek (NSE:MASTEK) Have A Healthy Balance Sheet?

Does Mastek (NSE:MASTEK) Have A Healthy Balance Sheet?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

MASTEKIN ITIN Market
7D3.7%4.4%2.3%
1Y-10.0%-6.1%-0.9%

Return vs Industry: MASTEK underperformed the Indian IT industry which returned -6.1% over the past year.

Return vs Market: MASTEK underperformed the Indian Market which returned -0.9% over the past year.

Price Volatility

Is MASTEK's price volatile compared to industry and market?
MASTEK volatility
MASTEK Average Weekly Movement6.9%
IT Industry Average Movement7.1%
Market Average Movement6.9%
10% most volatile stocks in IN Market9.9%
10% least volatile stocks in IN Market4.5%

Stable Share Price: MASTEK is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: MASTEK's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19824,977Hiral Chandranahttps://www.mastek.com

Mastek Limited, together with its subsidiaries, provides enterprise technology solutionsin India, the United Kingdom, Europe, the United States, the Middle East, and internationally. The company offers business and technology services comprising application development, ERP implementation and cloud migration, digital commerce, application support and maintenance, business intelligence and analytics, agile consulting, testing and assurance, and legacy modernization. It also provides data warehousing and enterprise digital transformation services.

Mastek Fundamentals Summary

How do Mastek's earnings and revenue compare to its market cap?
MASTEK fundamental statistics
Market Cap₹61.41b
Earnings (TTM)₹2.95b
Revenue (TTM)₹21.84b

20.8x

P/E Ratio

2.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MASTEK income statement (TTM)
Revenue₹21.84b
Cost of Revenue₹10.95b
Gross Profit₹10.88b
Other Expenses₹7.93b
Earnings₹2.95b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)98.23
Gross Margin49.84%
Net Profit Margin13.51%
Debt/Equity Ratio15.6%

How did MASTEK perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

18%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is MASTEK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MASTEK?

Other financial metrics that can be useful for relative valuation.

MASTEK key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.6x
Enterprise Value/EBITDA11.7x
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

How does MASTEK's PE Ratio compare to its peers?

MASTEK PE Ratio vs Peers
The above table shows the PE ratio for MASTEK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average37.2x

Price-To-Earnings vs Peers: MASTEK is good value based on its Price-To-Earnings Ratio (20.8x) compared to the peer average (37.2x).


Price to Earnings Ratio vs Industry

How does MASTEK's PE Ratio compare vs other companies in the Indian IT Industry?

Price-To-Earnings vs Industry: MASTEK is good value based on its Price-To-Earnings Ratio (20.8x) compared to the Indian IT industry average (26.1x)


Price to Earnings Ratio vs Fair Ratio

What is MASTEK's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MASTEK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.8x
Fair PE Ratio30.1x

Price-To-Earnings vs Fair Ratio: MASTEK is good value based on its Price-To-Earnings Ratio (20.8x) compared to the estimated Fair Price-To-Earnings Ratio (30.1x).


Share Price vs Fair Value

What is the Fair Price of MASTEK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MASTEK (₹2047.25) is trading below our estimate of fair value (₹2132.34)

Significantly Below Fair Value: MASTEK is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

PEG Ratio: MASTEK is poor value based on its PEG Ratio (1.2x)


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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


18.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MASTEK's forecast earnings growth (18% per year) is above the savings rate (6.7%).

Earnings vs Market: MASTEK's earnings (18% per year) are forecast to grow faster than the Indian market (17.4% per year).

High Growth Earnings: MASTEK's earnings are forecast to grow, but not significantly.

Revenue vs Market: MASTEK's revenue (16.9% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: MASTEK's revenue (16.9% 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 high in 3 years time (25.5%)


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Past Performance

How has Mastek performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


36.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MASTEK has high quality earnings.

Growing Profit Margin: MASTEK's current net profit margins (13.5%) are higher than last year (12.2%).


Past Earnings Growth Analysis

Earnings Trend: MASTEK's earnings have grown significantly by 36% per year over the past 5 years.

Accelerating Growth: MASTEK's earnings growth over the past year (41%) exceeds its 5-year average (36% per year).

Earnings vs Industry: MASTEK earnings growth over the past year (41%) exceeded the IT industry 38.6%.


Return on Equity

High ROE: MASTEK's Return on Equity (27.3%) is considered high.


Discover strong past performing companies

Financial Health

How is Mastek's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MASTEK's short term assets (₹15.2B) exceed its short term liabilities (₹8.5B).

Long Term Liabilities: MASTEK's short term assets (₹15.2B) exceed its long term liabilities (₹4.1B).


Debt to Equity History and Analysis

Debt Level: MASTEK has more cash than its total debt.

Reducing Debt: MASTEK's debt to equity ratio has increased from 13.9% to 15.6% over the past 5 years.

Debt Coverage: MASTEK's debt is well covered by operating cash flow (143.5%).

Interest Coverage: MASTEK's interest payments on its debt are well covered by EBIT (57.8x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.93%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MASTEK's dividend (0.93%) is higher than the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: MASTEK's dividend (0.93%) is low compared to the top 25% of dividend payers in the Indian market (1.89%).


Stability and Growth of Payments

Stable Dividend: MASTEK has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MASTEK's dividend payments have increased, but the company has only paid a dividend for 9 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (17.8%), MASTEK's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (24.1%), MASTEK's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Hiral Chandrana

0.92

Tenure

Mr. Hiral Chandrana is Investment Committee Member of Propellant Ventures. Mr. Chandrana serves as the Global Chief Executive Officer at Mastek Limited since July 6, 2021. He serves as an Advisor at Tercer...


Leadership Team

Experienced Management: MASTEK's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: MASTEK's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MASTEK insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.9%.


Top Shareholders

Company Information

Mastek Limited's 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
  • Implied Market Cap: ₹61.411b
  • Shares outstanding: 30.04m
  • Website: https://www.mastek.com

Number of Employees


Location

  • Mastek Limited
  • #106, SDF IV
  • Seepz
  • Mumbai
  • Maharashtra
  • 400096
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/25 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.