IT - Software
Mastek Limited, together with its subsidiaries, engages in the provision of enterprise technology solutions in India, the United Kingdom, Europe, North America, Middle East region, South-east Asia, India, Singapore, Australia, and internationally. The company offers digital and application engineering, including platform engineering, cloud engineering and migration, enterprise integration, microservices, low code, quality engineering, IPaaS, DevSecOps, and API solutions. It also provides oracle cloud and enterprise apps, such as E-business suite, consulting services, analytics cloud and infrastructure, autonomous data warehouse, enterprise resource planning, customer relationship management, supply chain management, human capital management, and industry cloud solutions, as well as Oracle-, Salesforce-, digital-, and commerce-managed services. In addition, the company offers digital commerce and experience solutions comprising commerce, experience platform, search and intelligent recommendation, and modern UI/UX solutions. Further, it provides data, automation, and artificial intelligence solutions, such as data management and governance, data warehousing, reporting, datalakes, cloud data warehouse, data virtualization, analytics/machine learning, and hyper automation, as well as extract, transform and load (ETL) solutions. Additionally, the company offers cloud enhancement, software application development and maintenance, business intelligence, testing and assurance, digital commerce, agile consulting, and legacy modernization services. It serves government, public sector, healthcare, life science, retail, consumer, manufacturing and technology, financial services, higher education, construction and engineering, hospitality, transportation and logistics, high tech, and media and entertainment industries. Mastek Limited was incorporated in 1982 and is based in Mumbai, India.
Profitability: Recent profitability of 12% is a good sign.
Balance Sheet: Strong Balance Sheet.
Size: Market Cap wise it is among the top 20% companies of india.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Insider Trading: There's significant insider buying recently.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Growth: Good revenue growth. With 59.2% growth over past three years, the company is going strong.
Technicals: SharesGuru indicator is Bearish.
Comprehensive comparison against sector averages
MASTEK metrics compared to IT
Category | MASTEK | IT |
---|---|---|
PE | 17.24 | 25.53 |
PS | 2.00 | 3.95 |
Growth | 12 % | 4.3 % |
MASTEK vs IT (2021 - 2025)
Understand Mastek ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
ASHANK DATTA DESAI | 10.97% |
KETAN MEHTA | 7.16% |
GIRIJA RAM | 5.67% |
UMANG TEJKARAN NAHATA | 5.49% |
SUNDAR RADHAKRISHNAN | 4.33% |
UMMED SINGH NAHATA | 4.26% |
RAKESH RAMAN | 3.97% |
RAM FAMILY TRUST I (through Trustee-sole beneficiary Mrs. Girija Ram) | 3.23% |
TATA DIGITAL INDIA FUND | 2.03% |
RUPA KETAN MEHTA | 1.55% |
ICICI PRUDENTIAL TECHNOLOGY FUND | 1.42% |
ABAKKUS GROWTH FUND-1 | 1.39% |
USHA SUNDAR | 1.37% |
ABAKKUS EMERGING OPPORTUNITIES FUND-1 | 1.36% |
STATE OF WISCONSIN INVESTMENT BOARD - ALLIANCE BER | 1.17% |
PADMA DESAI | 0.77% |
SAMVITHA SUDHAKAR RAM | 0.33% |
CHINMAY ASHANK DESAI | 0.22% |
VARUN SUNDAR | 0.21% |
SHANKAR SUNDAR | 0.14% |
Distribution across major stakeholders
Distribution across major institutional holders
Summary of Mastek's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Jan 25
Management Outlook and Key Points:
Outlook:
Strategic Priorities:
Financial Highlights:
Risks/Mitigations: Currency volatility, client-specific spend delays (e.g., healthcare payer segment), and AI integration pace. Focus remains on larger deals, client mining, and operational discipline.
Last updated: Jan 25
Major Questions and Summarized Answers:
Question: How does the demand environment in the UK look for FY'26, and what growth rates are expected across geographies?
Answer: The UK has a healthy backlog with strong demand in healthcare (prevention, data-driven decisions) and secured government services. North America expects steady growth, with full potential realized by H1 FY'26. UK private sector deals and AI adoption will drive growth.
Question: Why did AMEA margins decline, and can US margins improve further?
Answer: AMEA margins dipped due to tail account reductions, provisions, and project completion costs. US margins (13% EBIT) may improve by 100-200 bps but prioritize growth over margin expansion.
Question: How are UK spend patterns and new departments shaping growth? Provide details on private sector deals.
Answer: UK government focuses on digital/AI transformation. Mastek won a $10M+ deal in a new department and two private-sector deals (renewal + expansion). Healthcare invests in data modernization; private sector pipeline is strong.
Question: Can UK margins expand via offshoring or reduced subcontracting?
Answer: UK margins (~20-21%) will stabilize through efficiency measures (offshoring, resource optimization) but aren't expected to rise significantly. Renewed contracts prioritize cost efficiency over price hikes.
Question: Is the $40M deal included in the $250M backlog? What's its composition?
Answer: The $40M deal (80% renewal, 20% new) isn't in Q3 backlog. It will add 8-9% to future 12-month backlog. US deal cycles remain stable, but AI discussions are increasing.
Question: Will headcount reduction impact pricing due to productivity gains?
Answer: Headcount reduction targets low-revenue accounts. AI-driven productivity gains (starting Q4) aim for higher revenue/resource efficiency. Savings may partially benefit customers and margins.
Question: Why did AMEA margins drop to 1%, and when will they recover?
Answer: AMEA margins fell due to tail account exits and provisions. Focus on scalable clients and cost optimization aims for double-digit margins in 2-3 quarters.
Question: How will GBP/USD volatility impact margins?
Answer: Currency fluctuations (GBP depreciation) impacted Q3 margins by ~20-30 bps. Future impacts depend on exchange rates but are partially offset by USD/INR trends.
Question: Why are Data Automation & AI and Digital Commerce underperforming?
Answer: Data business dipped due to project closures but expects growth via healthcare/finance demand. Commerce declined as Oracle Commerce loses focus; shifting to Salesforce/digital engineering.
Question: What's the status of CFO recruitment and FY'26 growth outlook?
Answer: CFO search is active; interim support planned. FY'26 growth targets are "healthier than prior years" but unspecified. UK/US remain key drivers.
Analysis of Mastek's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
Description | Share | Value |
---|---|---|
UK & Europe operations | 56.8% | 493.5 Cr |
North America operations | 28.3% | 246.5 Cr |
AMEA | 14.9% | 129.6 Cr |
Total | 869.5 Cr |
Investor Care | |
---|---|
Dividend Yield | 0.87% |
Dividend/Share (TTM) | 19 |
Shares Dilution (1Y) | 0.68% |
Diluted EPS (TTM) | 124.46 |
Financial Health | |
---|---|
Current Ratio | 1.64 |
Debt/Equity | 0.28 |
Debt/Cashflow | 0.65 |
Valuation | |
---|---|
Market Cap | 6.71 kCr |
Price/Earnings (Trailing) | 17.24 |
Price/Sales (Trailing) | 2 |
EV/EBITDA | 11.72 |
Price/Free Cashflow | 23.92 |
MarketCap/EBT | 15.01 |
Fundamentals | |
---|---|
Revenue (TTM) | 3.35 kCr |
Rev. Growth (Yr) | 11.6% |
Rev. Growth (Qtr) | 0.75% |
Earnings (TTM) | 389.27 Cr |
Earnings Growth (Yr) | 21.83% |
Earnings Growth (Qtr) | -26.38% |
Profitability | |
---|---|
Operating Margin | 12.86% |
EBT Margin | 13.33% |
Return on Equity | 17.03% |
Return on Assets | 10.57% |
Free Cashflow Yield | 4.18% |
Detailed comparison of Mastek against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
INFY | InfosysComputers - Software & Consulting | 6.15 LCr | 1.65 LCr | -7.47% | +2.89% | 22.2 | 3.72 | +5.96% | +13.44% |
HCLTECH | HCL TechComputers - Software & Consulting | 4.28 LCr | 1.18 LCr | -3.38% | +4.92% | 25.07 | 3.64 | +7.49% | +8.85% |
TECHM | Tech MahindraComputers - Software & Consulting | 1.43 LCr | 53.53 kCr | +3.23% | +22.83% | 37.9 | 2.67 | -0.30% | +32.11% |
LTIM | LTIMindtreeComputers - Software & Consulting | 1.33 LCr | 38.08 kCr | -2.63% | -2.94% | 29.14 | 3.5 | +6.13% | -0.52% |
PERSISTENT | Persistent SystemsComputers - Software & Consulting | 82.19 kCr | 11.44 kCr | -4.41% | +53.73% | 62.28 | 7.19 | +19.25% | +28.17% |