MASTEK - Investment Analysis

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

Investment Rating: 4.1

📊 Fundamental Analysis

Mastek is a mid-cap IT services company with solid profitability and reasonable valuation, making it a promising candidate for long-term investment — especially for those seeking growth at a fair price.

Metric Value Implication

Market Cap ₹7,607 Cr. Mid-cap; agile and scalable in niche IT segments

Stock P/E 19.4 Undervalued vs. Industry PE of 29.1 — attractive entry point

PEG Ratio 2.10 Slightly elevated — suggests moderate overvaluation relative to growth

ROE / ROCE 16.3% / 17.5% Strong profitability and capital efficiency

Dividend Yield 0.77% Low yield — growth-focused rather than income

Debt-to-Equity 0.24 Low leverage — financially sound

EPS ₹128 Strong earnings — supports valuation

Profit Growth (QoQ) +28.7% Excellent momentum — signals operational strength

📉 Technical & Trend Analysis

Current Price: ₹2,453

DMA 50 / DMA 200: ₹2,456 / ₹2,508 — trading near both; consolidation zone

RSI: 45.7 — neutral, slightly weak

MACD: +15.7 — mild bullish momentum

Volume: Below average — subdued interest, possible accumulation

✅ Is It a Good Long-Term Investment?

Yes — with a growth bias. Mastek offers a compelling mix of strong earnings, low valuation, and improving profitability. While the PEG ratio is slightly high, the recent profit growth and low debt make it a solid long-term play in the mid-cap IT space.

🎯 Ideal Entry Price Zone

Buy Zone: ₹2,350–₹2,450

Near 50 DMA and support levels

RSI suggests potential for bounce

Accumulate on dips, especially if PEG drops below 1.8

🧭 Exit Strategy / Holding Period (If Already Holding)

If you're already invested

Holding Period: 2–4 years to capture digital transformation tailwinds

Exit Strategy

Partial Exit near ₹3,300–₹3,400 if valuation stretches or PEG > 2.5

Full Exit if ROE drops below 13% or profit growth stagnates for 2+ quarters

Reassess if IT sector multiples compress or global demand weakens

Would you like a comparison with peers like Coforge, Persistent Systems, or LTIMindtree to benchmark Mastek’s growth and valuation profile?

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