Mastek Ltd Stock Analysis

BSE: 523704 | NSE: MASTEK | IT - Software | Mid Cap

BSE Share Price 26-Sep-2022 18:01
1731.15 -26.80 (-1.52%)

DeciZen - Make an Informed Decision on Mastek

Overall Rating

1. Quality

2. Valuation

Overvalued

3. Price Trend

Mastek Price Chart

P/E Ratio (SA) :
76.00
Market Cap :
5,287 Cr.
52-wk low :
1,758
52-wk high :
3,666
Bole Toh?

1. Is Mastek Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Mastek Ltd is a average quality company.

2. Is Mastek Ltd undervalued or overvalued?

The key valuation ratios of Mastek Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Mastek Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Mastek Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Mastek:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Mastek Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 7.3%6.7%16.4%3.4%11.8%4.6%10.4%9.1%4.3%11.9%-
Value Creation Index -0.5-0.50.2-0.8-0.2-0.7-0.3-0.4-0.7-0.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 535551665379169162189163187257267
YoY Gr. Rt. %-3%20.8%-43.1%-55.2%-4.2%16.7%-13.7%14.5%37.2%-
Adj EPS 14.91128.54.610.74.510.59.96.321.423.1
YoY Gr. Rt. %--26.4%159%-83.8%132.3%-58.5%136.2%-6%-36.4%240.6%-
BVPS (₹) 206.9155193.685.794.992102101.7183.1196.7196.3
Adj Net Profit 36.824.464.210.625.110.525.22415.864.270
Cash Flow from Ops. 34.688.99.539.650.322.117.915.822.811.4-
Debt/CF from Ops. 0.100.10000.10.10.10.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -7.8%8.7%10.7%37.2%
Adj EPS 4.1%14.8%26.7%240.6%
BVPS -0.615.724.57.4
Share Price 28.6% 44.2% 71.6% -44.8%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 7.36.716.43.411.74.610.39.14.211.911.8
Op. Profit Mgn % 5.19.511.75.417.49.68.92.29.313.214.4
Net Profit Mgn % 6.94.49.72.814.86.513.314.78.52526
Debt to Equity 0000000000-
Working Cap Days 13588791382071471201581431260
Cash Conv. Cycle 532827566441566566710

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 11.80%

Net Profit is growing at healthy rate in last 3 years 26.73%

Sales growth is good in last 4 quarters at 31.96%

Sales growth has been subdued in last 3 years 0.00%

Latest Financials - Mastek Ltd.

Standalone Consolidated
TTM EPS (₹) 23.1 100.8
TTM Sales (₹ Cr.) 267 2,237
BVPS (₹.) 196.3 375.6
Reserves (₹ Cr.) 575 1,115
P/BV 8.96 4.69
PE 76.00 17.50
From the Market
52 Week Low / High (₹) 1757.95 / 3666.00
All Time Low / High (₹) 7.50 / 3666.00
Market Cap (₹ Cr.) 5,287
Equity (₹ Cr.) 15
Face Value (₹) 5
Industry PE 26.5

Management X-Ray of Mastek :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *57.0057.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Mastek

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Mastek Ltd

Mastek incorporated in 1982, is engaged in providing software solutions and integration services. Mastek a leading IT solutions player with global operations in providing new technology and IP-led enterprise solutions to insurance, government and financial service organizations worldwide

Today, Mastek has grown to become a US $227 million Corporation.The company has partnered with various IT giants for delivering quality product and services namely Microsoft, Oracle and IBM are amongst others.

The company has received ISO 9001 certification for quality management and has assessed at P-CMM Level 3 and SW-CMM Level 5.

Product Offering

Services- Under services the company is engaged in application development, application management outsourcing, system integration, system rationalisation and business frameworks.

Solutions- The company offers solutions that support various sector to deliver quality services. Mastek offers solutions to government, insurance and financial services.

Milestone & Awards

1982: Mastek was founded by 4 IIM graduates viz. Ketan Mehta, Ashank Desai and R Sundar are the founder members who are later joined by Sudhakar Ram in October 1984.

1985: The Company was amongst the first in India to create software products.

1989: One of the first to introduce Relational database management system (RDBMS) in India.

1990: The Company set up subsidiary in Singapore.

1992: Mastek USA was established. 

          The company was first to develop ERP in India.

          Mastek became First Indian IT Company that got listed at premium price.

1993: Mastek was first IT Company to offer Employee Stock Option Plan (ESOP) in India.

1994: The Company set up subsidiary in Malaysia.

1996: Mastek UK is set up.

1997: The Company was among one of the first to foray into CRM services globally.

1999: The Company set up subsidiary in Germany.

2000: First IT Solutions Company in the world to be assessed at P-CMM Level 3.

2002: Company launched Campus at Millennium Park at New Bombay.

2003: One of the worlds largest Dot Net project London Congestion Charging goes live.

2005: Mastek signed the memorandum of agreement to acquire 15.5 acres of land at Mahindra City in Chennai.

         Mastek group’s first development centre was set up outside Maharashtra, India

         The company set up its largest development centre outside Mumbai in Pune.

2007: The Company launched its first development centre outside Maharashtra in Chennai.

           A new building was commissioned at Millennium Park campus at New Bombay.

           Mastek is amongst the first to ride the third wave of Indian IT.  

2010:


Mastek Acquires Kognitio Data Migration Offering.
Mastek - Mastek acquires the assets of SEG Software, LLC.
Achieves CMMi Level 5 (version1.2) appraisal by Software Engineering Institute (SEI).
Mastek's Elixir Distribution Management (EDM) solution rated 'Positive' in Gartner's Incentive Compensation Management (ICM) Marketscope report.
Earned prestigious standing in the vendor ranking of the Vanguards in Insurance Practices (VIP) program by INN and Celent - determined solely by voting from insurance carriers, brokers and agents in 2009 and 2010.
Ranked amongst the Best 20 Leaders by The International Association of Outsourcing Professional (IAOP), industry focus Government in 2009 and 2010.
Ranked amongst the Best 20 Leaders by The International Association of Outsourcing Professional (IAOP), industry focus Financial Services- Insurance in 2009 and 2010.
Ranked amongst the Best 20 Leaders by The International Association of Outsourcing Professional (IAOP), industry focus Financial Service – Banking, Capital Markets in 2009 and 2010.
Ranked amongst the Best 20 Leaders by The International Association of Outsourcing Professional (IAOP), Services offered – Information and Communication in 2009 and 2010.

2011:

Mastek wins contract worth Rs. 59 crore.
Consistently ranked high on the list of Top 100 outsourcing companies in the World by The International Association of Outsourcing Professionals (IAOP) in 2006, 2007, 2008, 2009, 2010 and 2011.
Mastek UK Project Manager Vishal Somal became one of the first candidates to receive the APMG & DSDM qualification in Agile Project Management
Apollo Munich Health Insurance won Celent Model Insurer Asia 2011 Award for the solution developed by Mastek.
Our customer, Commercial Tax Department, Government of Odisha, won the jury award for 'The Best Project under the Government to Business (G2B) Category' at the eWorld Forum for our e-Services solution.
Mastek and its client, Department of Social Justice & Special Assistance, Government of Maharashtra, won the jury award for 'Best ICT in Financial Inclusion Initiative of the year' at the eIndia Awards for the e-Scholarship solution developed by Mastek.
Mastek and its client, Maharashtra Housing and Area Development Authority (MHADA), Government of Maharashtra, won the jury award for 'Best Urban ICT Initiative of The Year' award at the eIndia Awards for the Integrated Housing Lottery Management System (IHLMS) solution developed by Mastek.
Mastek's 'Claims Surveyor' solution won IDC's FIIA Award for Innovation in Mobility.

2012:
MajescoMastek wins two Celent XCelent Awards for STG Billing.

2013:
Mastek achieves Level 5 (version 1.3 ) appraised by CMMI institute for ‘Product Implementation, Full Scope Projects Managed from India.
Mastek’s Elixir Distribution Management(EDM) solution received the Celent’s XCelent Service Award, 2013
Mastek is ranked 67th in the Leader category in the ‘The 2013 Global Outsourcing 100® service providers’ list by The International Association of Outsourcing Professional (IOAP)

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