Mastek Ltd
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Mastek Ltd enters FY27 with a positive outlook, driven by its successful transition to an 'AI-first' service model, which has resulted in securing over 85 deals in FY26 and a notable 24.4% year-over-year growth in its order backlog. Management's confidence stems from completed foundational work, including leadership enhancements and improved pipeline quality, positioning the company for accelerated growth, particularly in the UK healthcare sector and US Federal markets. However, challenges such as wage inflation and macroeconomic uncertainties may pressure margins. Vista's financial outlook reflects stable revenue growth consistent with historical performance, supported by a conservatively financed balance sheet and fair valuation metrics. The expected upside remains modest at 0.12%, with a 12-month target price of approximately 1822.07. Industry dynamics favor mid-cap IT firms, with improving pricing power and a focus on AI technologies enhancing service offerings. Over the next 12-24 months, Mastek's key opportunities lie in scaling AI-assisted services and deepening enterprise client relationships, while watchpoints include potential margin pressures and macroeconomic fluctuations that could impact client spending
Why We Like This Stock
- Successful transition to an 'AI-first' service model, securing over 85 deals in FY26
- Strong 24.4% year-over-year growth in order backlog, indicating robust demand
- Focus on high-value AI-led digital engineering enhances competitive positioning
Things To Watch Out For
- Margin pressures from wage inflation could impact profitability
- Macroeconomic uncertainties may affect client spending and overall revenue growth
- Reliance on specific sectors like healthcare and federal services poses concentration risk
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,055 | 3,455 | 3,699 | 3,820 | 4,211 |
| Profit Before Tax (Cr.) | 386 | 446 | 551 | 596 | 650 |
| PBT Margin | 12.6% | 12.9% | 1489.6% | 15.6% | 15.4% |
| Net Profit (Cr.) | 311 | 306 | 374 | 407 | 443 |
| Earnings Per Share | 96.8 | 98.6 | 120.6 | 131.2 | 142.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Anand Rathi | ▲ Buy | 2,240 | 20-Apr-2026 |
Company Overview
Show Company Profile
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 cloud engineering and migration, enterprise integration, low code, quality engineering, and DevSecOps. It also provides oracle cloud and enterprise apps, such as E-business suite, consulting services, analytics cloud and infrastructure, autonomous data warehouse, Cloud Applications, Cloud Applications, Value Based Analytics, PeopleSoft to Cloud Migration. In addition, the company offers digital commerce and experience solutions comprising commerce, experience platform, search and intelligent recommendation, and modern UI/UX solutions. Further, the company 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, it 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.