MASTEK - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.1

Here’s an analytical walkthrough of Mastek's financial depth, valuation indicators, and strategic edge to help map your investment decision

💼 Core Financials

Profitability Metrics

ROE (16.3%) and ROCE (17.5%) indicate healthy operational efficiency, above many mid-cap IT peers.

EPS of ₹128 reflects strong earnings generation.

Quarterly Performance

PAT growth from ₹87.2 Cr. to ₹92.0 Cr. marks a 28.7% profit variation, indicating robust quarterly momentum.

Leverage: Debt-to-equity at 0.24 is comfortably low, providing headroom for strategic investments or acquisitions.

📊 Valuation Metrics

Metric Value Comment

P/E 19.4 Undervalued relative to industry PE (29.1)

P/B Ratio ~3.08 Reasonable, especially given tech sector norms

PEG Ratio 2.10 Suggests moderate premium valuation compared to growth rate

Dividend Yield 0.77% Offers a small income cushion for long-term holders

Verdict: Valuation supports accumulation, particularly given earnings momentum and sector dynamics.

🧠 Business Model & Strategic Edge

Specialized IT services player focused on cloud, automation, digital transformation.

Gaining traction with government and enterprise contracts, especially in UK and North America.

Agile delivery, strong IP, and niche expertise enhance resilience against mega-cap competition.

🔎 Technical Pulse

RSI: 45.7 — Neutral zone; possible bounce opportunity.

MACD: 15.7 — Positive momentum forming.

DMA Trends

Price is hovering around 50-DMA and slightly below 200-DMA — suggesting consolidation and potential for upward breakout.

🎯 Entry Zone & Investment Strategy

Entry Zone: ₹2,400–₹2,450 — close to DMA support and recent volume dip.

Long-Term Play

Digital spending trends, international exposure, and consistent cash flows support multi-year growth.

Great pick for portfolios looking to blend steady compounding with sector-specific upside.

If you want a comparison with peers like Cyient, Tata Elxsi, or Persistent Systems, I can line that up next. Or even run an intrinsic valuation simulation to test its true worth. Let’s build your conviction one metric at a time.

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