Check Before You Invest : Mastek Ltd

Q: Which industry/sub-sector does Mastek Ltd belong to?

Mastek Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q: Is Mastek Ltd a good quality company?

Mastek Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Mastek Ltd undervalued or overvalued?

Mastek Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 25.16, Historic Median: 65.26. Price to Book, Current: 5.87, Historic Median: 9.57. Price to Sales, Current: 5.55, Historic Median: 20.62. EV to EBITDA, Current: 27.63, Historic Median: 55.12

Q: Is Mastek Ltd a good buy now?

Mastek Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Mastek Ltd?

Mastek Ltd revenue growth is 30.5% for FY-2025, which is above its 5-year CAGR of 24.37%, indicating faster growth.

Q: Gross Profit margin of Mastek Ltd?

Mastek Ltd Gross profit margin which is the profit after deduction of direct costs, is 31.5% for FY-2025, which is in line with its 5-year median of 32.4%, indicating stable margins.

Q: Operating Profit Margin of Mastek Ltd?

Mastek Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.12% for FY-2025, which is above its 5-year median of 15.03% indicating increasing margins.

Q: Net Profit Margin of Mastek Ltd?

Mastek Ltd Net Profit Margin is 24.8% for FY-2025, is below its 5-year median of 27.68%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 31.5, Historic Median: 32.4. Operating Profit Margin (%), Current: 17.12, Historic Median: 15.03. Net Profit Margin (%), Current: 24.8, Historic Median: 27.68

Q: Return on Asset of Mastek Ltd?

Mastek Ltd Return on Asset is 11.82%, which is in line with its 5-year historical median of 11.84%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Mastek Ltd?

Mastek Ltd Return on capital employed is 15.79% for FY-2025, which is in line with its 5-year historical median of 15.79%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Check Before You Invest : Mastek Ltd

BSE: 523704 NSE: MASTEK ISIN: INE759A01021

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Mastek Ltd belong to?

Mastek Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Mastek Ltd a good quality company?

Mastek Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Mastek Ltd undervalued or overvalued?

Mastek Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	25.16	65.26
Price to Book	5.87	9.57
Price to Sales	5.55	20.62
EV to EBITDA	27.63	55.12

Q.4 Is Mastek Ltd a good buy now?

Mastek Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Mastek Ltd?

Mastek Ltd revenue growth is 30.5% for FY-2025, which is above its 5-year CAGR of 24.37%, indicating faster growth.

Q.2 Gross Profit margin of Mastek Ltd?

Mastek Ltd Gross profit margin which is the profit after deduction of direct costs, is 31.5% for FY-2025, which is in line with its 5-year median of 32.4%, indicating stable margins.

Q.3 Operating Profit Margin of Mastek Ltd?

Mastek Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.12% for FY-2025, which is above its 5-year median of 15.03% indicating increasing margins.

Q.4 Net Profit Margin of Mastek Ltd?

Mastek Ltd Net Profit Margin is 24.8% for FY-2025, is below its 5-year median of 27.68%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	31.5	32.4
Operating Profit Margin (%)	17.12	15.03
Net Profit Margin (%)	24.8	27.68

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Mastek Ltd?

Mastek Ltd Return on Asset is 11.82%, which is in line with its 5-year historical median of 11.84%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Mastek Ltd?

Mastek Ltd Return on capital employed is 15.79% for FY-2025, which is in line with its 5-year historical median of 15.79%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Mastek Ltd?

Mastek Ltd Return on equity is 13.95% for FY-2025, which is in line with its 5-year historical median of 14.65%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Mastek Ltd?

Mastek Ltd Cash conversion cycle is 35 days, in line with its 5-year historical median of 35 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.48	0.42
ROE (%)	13.95	14.65
ROCE (%)	15.79	15.79
Cash Conversion Cycle	35 days	35 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Mastek Ltd?

Mastek Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.01, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Mastek Ltd?

Mastek Ltd Debt to cash flow from operations is 0.06, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Mastek Ltd?

Q.1 Promoter shareholding and pledge status of Mastek Ltd?

Promoters hold 35.76% of the Mastek Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Mastek Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Mastek Ltd vs industry peers?

Mastek Ltd revenue CAGR is 24.37%, compared to the industry median CAGR of 2.48%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	30.5	2.5
Gross Profit Growth (%)	8.5	18.3
Operating Profit Growth (%)	20.3	18
Net Profit Growth (%)	0.8	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.48	0.46
ROE (%)	13.95	3.97
ROCE (%)	15.79	6.41
Cash Conversion Cycle (days)	34.98	36

Valuation & price assessment

Q.1 Stock return of Mastek Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 28.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	28.3%	-2.7%	-6.5%	-29.8%

Q.2 Valuation ratios of Mastek Ltd vs historical?

The current P/E ratio of 25.16 is lower than its historical median of 65.26, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	25.16	65.26	47.38
Price to Book	5.87	9.57	2.64
Price to Sales	5.55	20.62	4.79
EV to EBITDA	27.63	55.12	16.75

Check more companies

1. Hexaware Tech.

2. Inventurus Knowledge

3. Tata Technologies

4. Tata Elxsi

5. IDream Film Infrast.

6. Fractal Analytics

7. KPIT Technologies

8. Amagi Media Labs

9. Nazara Technologies

10. RateGain Travel Tech

Check trending companies

1. BLS International Services Ltd.

2. Dixon Technologies (India) Ltd.

3. Bajaj Housing Finance Ltd.

4. CG Power and Industrial Solutions Ltd.

5. Solar Industries India Ltd.

Check Before You Invest : Mastek Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

Create stable, long-term investment portfolio with strong, consistent stocks.

About MoneyWorks4Me

Our Vision

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.