Buy Mastek: Ashit Suri

Ashit Suri, Fundamental Research Analyst, JV Capital Services in an interview with ET Now talks about Mastek.

Mastek, it’s a buy for you what is your one year target?

Yes, I am recommending Matek mainly because of the valuation aspect. The company is very mediocre performance in the last quarters and subdue guidance for June has led to price crashing down really

Of course the overall market has not been too pleasing. The stock is trading at just 7 times trailing earnings. Just a couple of days back the management has given a positive directions stating that the UK elections having been done with.

There is a possibility of some good order flows in the coming quarters so also an acquisition news is floating around where the company is looking to acquire smaller companies in UK as well as US between $30 to $50.

Further the company has good dividend yield of 4%. Looking at all these parameters, I see the price of 261 to be a good time to get into the stock. I see limited downsides from the stock. The stock touched 290 a couple of days back before its corrected to these levels.