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 10-year financial track record.

Q.3 Is Mastek Ltd undervalued or overvalued?

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

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

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 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.3 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.4 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.5 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	0.48	0.42
ROE	13.95	14.65
ROCE	15.79	15.79
Cash Conversion Cycle	35 days	35 days

Q.6 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.7 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.8 Net Profit Margin of Mastek Ltd?

Mastek Ltd Net Profit Margin is 24.8% for FY-2025, is below with 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

Q.9 Debt to Equity ratio of Mastek Ltd?

Mastek Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.11, 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

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)

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

Mastek Ltd revenue CAGR is 24.37%, compared to the industry median CAGR of 10.86%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	30.5	10.9
Gross Profit Growth	8.5	18.3
Operating Profit Growth	20.3	18.8
Net Profit Growth	0.8	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.48	0.5
ROE	13.95	5.83
ROCE	15.79	6.79
Cash Conversion Cycle (days)	34.98	47

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 27.3% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	27.3%	-2.2%	-1.7%	-19.7%

Q.3 Valuation ratios of Mastek Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	25.38	65.87	47.37
Price to Book	5.92	9.64	2.63
Price to Sales	5.6	20.72	4.79
EV to EBITDA	27.87	55.63	16.48

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