Mastek Limited (NSE:MASTEK) Just Reported, And Analysts Assigned A ₹2,919 Price Target

Shareholders might have noticed that Mastek Limited (NSE:MASTEK) filed its full-year result this time last week. The early response was not positive, with shares down 3.8% to ₹2,247 in the past week. Revenues of ₹35b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹121, missing estimates by 4.5%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 3 warning signs about Mastek. View them for free.

Following the latest results, Mastek's six analysts are now forecasting revenues of ₹38.7b in 2026. This would be a decent 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 3.4% to ₹126. In the lead-up to this report, the analysts had been modelling revenues of ₹39.7b and earnings per share (EPS) of ₹137 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

See our latest analysis for Mastek

It'll come as no surprise then, to learn that the analysts have cut their price target 7.5% to ₹2,919. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Mastek, with the most bullish analyst valuing it at ₹3,320 and the most bearish at ₹2,497 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Mastek's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2026 being well below the historical 20% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.8% annually. So it's pretty clear that, while Mastek's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Mastek's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Mastek's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Mastek. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Mastek analysts - going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Mastek you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.