Hold Mastek, target price Rs 1900: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has hold call on Mastek with a target price of Rs 1900. The current market price of Mastek is Rs 1687.3.

Mastek, incorporated in the year 1982, is a Small Cap company (having a market cap of Rs 5100.54 Crore) operating in IT Software sector.

Mastek key Products/Revenue Segments include I T Services for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 664.69 Crore, up 5.14 % from last quarter Total Income of Rs 632.21 Crore and up 19.19 % from last year same quarter Total Income of Rs 557.65 Crore. Company has reported net profit after tax of Rs 67.12 Crore in latest quarter.

The company’s top management includes Mr.S Sandilya, Mr.Ashank Desai, Ms.Priti Rao, Mr.Atul Kanagat, Mr.Rajeev Grover, Mr.Ketan Mehta. Company has Walker Chandiok & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 3 Crore shares outstanding.

Investment Rationale
Although the order backlog is strong, the outlook for FY24E looks uncertain on account of global headwinds with gradual recovery in the coming quarters. The brokerage believes the structural growth story for the Indian IT sector remains intact.

Promoter/FII Holdings
Promoters held 37.28 per cent stake in the company as of 30-Sep-2022, while FIIs owned 8.01 per cent, DIIs 3.73 per cent.