Mastek Ltd - Stock Valuation and Financial Performance

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

Mastek Share Price

2,614.80 -25.60 -0.97%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on Mastek

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Mastek stock performance -

mw4me loader
P/E Ratio (SA):
63.09
Market Cap:
8,065.2 Cr.
52-wk low:
1,551.1
52-wk high:
3,147

Is Mastek Ltd an attractive stock to invest in?

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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 4.7%13.2%3.4%11.8%4.6%10.4%9.1%4.3%11.9%13%-
Value Creation
Index
-0.7-0.1-0.8-0.2-0.7-0.3-0.4-0.7-0.10.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 330433379169162189163187257313359
Sales YoY Gr.-31.3%-12.5%-55.2%-4.2%16.7%-13.7%14.5%37.2%22.1%-
Adj EPS 7.622.94.610.74.510.59.96.321.428.741.4
YoY Gr.-199.7%-79.8%132.3%-58.5%136.2%-6%-36.4%240.6%34.3%-
BVPS (₹) 155193.685.794.992102101.7183.1196.7238.9266.1
Adj Net
Profit
16.951.610.625.110.525.22415.864.287.7128
Cash Flow from Ops. 88.99.539.650.322.117.915.822.815.254.1-
Debt/CF from Ops. 00.10000.10.10.10.20.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -0.6%14.1%24.2%22.1%
Adj EPS 15.9%45.2%42.7%34.3%
BVPS4.9%21%32.9%21.5%
Share Price 29.4% 41.3% 26.7% 63.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
4.713.23.411.74.610.39.14.211.91316.4
Op. Profit
Mgn %
12.513.65.417.49.68.92.29.313.21515.5
Net Profit
Mgn %
5.111.92.814.86.513.314.78.5252835.6
Debt to
Equity
0000000000-
Working Cap
Days
14612113820714712015814312610553
Cash Conv.
Cycle
464156644156656645148

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 16.40%

Sales growth is growing at healthy rate in last 3 years 24.23%

Net Profit is growing at healthy rate in last 3 years 42.72%

Sales growth is good in last 4 quarters at 22.79%

No data to display

Latest Financials - Mastek Ltd.

Standalone Consolidated
TTM EPS (₹) 41.4 91
TTM Sales (₹ Cr.) 359 2,984
BVPS (₹.) 266.1 618.7
Reserves (₹ Cr.) 805 1,893
P/BV 9.83 4.23
PE 63.09 28.72
From the Market
52 Week Low / High (₹) 1551.10 / 3147.00
All Time Low / High (₹) 7.50 / 3666.00
Market Cap (₹ Cr.) 8,065
Equity (₹ Cr.) 15.4
Face Value (₹) 5
Industry PE 33.5

Management X-Ray of Mastek:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales330433379169162189163187257313
Operating Expenses 289374358143147173160170223266
Manufacturing Costs-79-4810719161615131717
Material Costs0000000000
Employee Cost 32537721599114135124141188213
Other Costs 43463625172221151837
Operating Profit 4058202715173173447
Operating Profit Margin (%) 12.3%13.5%5.4%15.9%9.5%8.9%2.1%9.3%13.2%15.0%
Other Income 23232113233549357473
Interest 0000000110
Depreciation 26271813111211111213
Exceptional Items -165-3-300-7-5159
Profit Before Tax 215921242739343696166
Tax 2-3711296181934
Profit After Tax 206213231631271977132
PAT Margin (%) 5.9%14.3%3.5%13.6%9.7%16.1%16.8%10.1%30.0%42.2%
Adjusted EPS (₹)8.827.45.89.96.612.711.37.525.743.3
Dividend Payout Ratio (%)51%9%43%35%90%67%71%194%74%44%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 343437197222218245247462590729
Share Capital 11111112121212131515
Reserves 332425186210206233235449575714
Minority Interest0000000000
Debt1100111122
Long Term Debt1100111122
Short Term Debt0000000000
Trade Payables364232113124
Others Liabilities 825130202437591565943
Total Liabilities 430495231244246285308621682798

Fixed Assets

Gross Block261278203214196201187159170181
Accumulated Depreciation184209157169151155152128139148
Net Fixed Assets78694645454535313133
CWIP 0100212244
Investments 21820333119132156174484491674
Inventories0000000000
Trade Receivables34755214283626455738
Cash Equivalents 175035412122124497
Others Assets83966462273450354941
Total Assets 430495231244246285308621682798

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 8994050221816231554
PBT 487324231631341996166
Adjustment 681067-3-206-58-107
Changes in Working Capital 42-691129-3-0113-1011
Tax Paid -73-1-73-9-9-5-13-16
Cash Flow From Investing Activity -33-1140-61-6-423-1322-7
Capex -18-19-11-11-13-11-6-6-1227
Net Investments -30042-46-6-16-9-3114359
Others 1599-313233724-110-93
Cash Flow From Financing Activity -66-5-40-8-14-30-6-45-56
Net Proceeds from Shares 0662232822
Net Proceeds from Borrowing 00-10010010
Interest Paid 0000000-100
Dividend Paid -12-10-9-2-11-18-31-14-48-57
Others -55000000000
Net Cash Flow -11-675-108084-8-9
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)5.3815.854.2211.037.1513.1911.175.3214.6520.03
ROCE (%)5.9615.136.5611.3111.9716.0712.889.8317.7624.61
Asset Turnover Ratio0.740.941.040.710.660.710.550.40.390.42
PAT to CFO Conversion(x)4.450.153.082.171.380.580.591.210.190.41
Working Capital Days
Receivable Days50466172476169697255
Inventory Days0000000000
Payable Days0000000000

Mastek Ltd Stock News

Mastek Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Mastek on 12-Apr-2024 16:59 is ₹2,614.8.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 16:59 the market cap of Mastek stood at ₹8,065.2.
The latest P/E ratio of Mastek as of 12-Apr-2024 16:59 is 63.09.
The latest P/B ratio of Mastek as of 12-Apr-2024 16:59 is 9.83.
The 52-week high of Mastek is ₹3,147 and the 52-week low is ₹1,551.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Mastek is ₹359.4 ( Cr.) .

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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