Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 25 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fundamental Analysis of Mastek Ltd

About the Company - Mastek Ltd

Mastek Ltd. is a Public Limited Listed company incorporated on 14/05/1982 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L74140GJ1982PLC005215 and registration number is 005215. Currently Company is involved in the business activities of Computer programming, consultancy and related activities. Company’s Total Operating Revenue is Rs. 256.70 Cr. and Equity Capital is Rs. 15.01 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & Software804/805, President House, Opp. C N Vidyalaya, Ahmedabad Gujarat 380006investor_grievances@mastek.com
http://www.mastek.com
Management
NamePosition Held
Mr. Ashank DesaiNon Executive Chairman
Mr. Rajeev Kumar GroverInd. Non-Executive Director
Mr. Ketan MehtaNon Exe.Non Ind.Director
Mr. Suresh VaswaniNon Exe. & Ind. Director
Mr. Umang NahataNon Exe.Non Ind.Director

Basic Stock Data of Mastek Ltd

Last Updated: July 24, 2024, 10:54 pm

Market Cap 8,358 Cr.
Current Price 2,707
High / Low3,147/1,964
Stock P/E27.5
Book Value 681
Dividend Yield0.70 %
ROCE18.1 %
ROE16.0 %
Face Value 5.00
PEG Ratio1.79

Data Source: screener.in

Competitors of Mastek Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Empower India Ltd 260 Cr. 2.233.86/0.5437.6 2.540.00 %2.38 %2.35 % 1.00
Elnet Technologies Ltd 142 Cr. 356399/2108.13 3480.56 %17.9 %13.4 % 10.0
Ekennis Software Service Ltd 14.7 Cr. 105169/80.0 35.80.00 %1.55 %0.00 % 10.0
eDynamics Solutions Ltd 8.23 Cr. 3.223.22/1.14 13.90.00 %0.06 %0.06 % 10.0
ECS Biztech Ltd 24.5 Cr. 11.914.2/5.928.73 1.040.00 %4.78 %% 10.0
Industry Average52,027.81 Cr723.4886.85110.210.63%20.90%20.79%6.82

Mastek Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales443483516534552582570625659709725766784
Expenses339377404421436461461518545584598642651
Operating Profit104106113113116121109107114126127123134
OPM %23%22%22%21%21%21%19%17%17%18%18%16%17%
Other Income435861826326-0213
Interest222223258991313
Depreciation12101010111211172020202122
Profit before tax9497106108110124122117929610090102
Tax %25%22%24%25%24%29%31%27%27%25%27%28%24%
Net Profit70768082838884866773746578
EPS in Rs23.0324.0027.4224.3824.7726.6225.6826.3021.3323.7722.9120.5024.56

Last Updated: July 10, 2024, 7:35 pm

Mastek Ltd Quarterly Chart

Mastek Ltd Profit & Loss

Last Updated: July 10, 2024, 7:35 pm

MonthJun 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales7346839231,0135275608171,0331,0711,7222,1842,5632,984
Expenses7106268339655095157189029161,3571,7212,1082,475
Operating Profit245790471845100132156364463456509
OPM %3%8%10%5%3%8%12%13%15%21%21%18%17%
Other Income129111415122125172836646
Interest101104664882545
Depreciation29223337161519172545436782
Profit before tax5446822163996133144339448427389
Tax %91%22%24%20%17%17%27%24%21%26%26%27%
Net Profit0345218143270101114252333310289
EPS in Rs0.1913.9323.377.865.9713.8629.5342.3344.8282.9798.3295.9991.74
Dividend Payout %0%22%19%32%42%25%20%20%18%17%19%20%

Mastek Ltd Profit & Loss Yearly Chart

Mastek Ltd Growth

Compounded Sales Growth
10 Years:13%
5 Years:24%
3 Years:21%
TTM:16%
Compounded Profit Growth
10 Years:20%
5 Years:26%
3 Years:14%
TTM:12%
Stock Price CAGR
10 Years:30%
5 Years:48%
3 Years:0%
1 Year:27%
Return on Equity
10 Years:17%
5 Years:20%
3 Years:20%
Last Year:16%

Last Updated: July 24, 2024, 5:59 pm

Mastek Ltd Balance Sheet

Last Updated: July 10, 2024, 7:35 pm

MonthJun 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital14121111121212121213151515
Reserves5225215495853084575377047788461,0561,6681,777
Borrowings722290667070335273203403510
Other Liabilities2152071922071081702021797631,1461,1931,0251,284
Total Liabilities7577427548324287058219661,8882,2772,4673,1113,586
Fixed Assets256247261279661801791678578078411,7401,977
CWIP0301002122473
Investments4340845450274284396276234266952
Other Assets4584524094983122513564017541,2351,5961,2961,554
Total Assets7577427548324287058219661,8882,2772,4673,1113,586

Mastek Ltd Reserves and Borrowings Chart

Mastek Ltd Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 80895932436575184287273108420
Cash from Investing Activity -12-62-28-84-127-18-54-262218-26-719-256
Cash from Financing Activity -43-6722-465-7-16205-118-128932
Net Cash Flow26-4053-57-20405127387119-519166

Mastek Ltd Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days8046486755787410879737265
Inventory Days
Days Payable
Cash Conversion Cycle8046486755787410879737265
Working Capital Days4026283829173830-19-75033
ROCE %8%12%5%3%10%17%19%16%26%32%23%

Mastek Ltd Financial Efficiency Indicators Chart

Mastek Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters44.25%37.75%37.59%37.30%37.31%37.28%37.27%36.75%36.58%36.50%36.48%36.26%
FIIs5.67%4.16%4.84%6.62%8.01%13.04%13.25%13.14%13.42%13.93%14.10%14.40%
DIIs10.72%7.99%7.22%6.65%5.71%3.73%3.90%4.80%5.85%5.99%6.41%7.07%
Public39.36%50.10%50.35%49.43%48.96%45.96%45.58%45.30%44.14%43.56%43.01%42.26%
No. of Shareholders58,70689,1771,09,9921,04,3761,06,1801,10,4451,07,6131,05,0431,05,47194,08190,28484,949

Mastek Ltd Shareholding Pattern Chart

No. of Mastek Ltd Shareholders

Mastek Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
ICICI Prudential Technology Fund250,5600.5155.349,5322024-07-242528.62%
Tata Digital India Fund155,0700.4336.829,5322024-07-241526.84%
Nippon India Nifty Smallcap 250 Index Fund9,5320.272.269,5322024-07-240%
Motilal Oswal Nifty Smallcap 250 Index Fund5,8240.271.389,5322024-07-24-38.9%
SBI Nifty Smallcap 250 Index Fund4,5600.271.089,5322024-07-24-52.16%
Quantum Small Cap Fund2,0711.710.499,5322024-07-24-78.27%
Motilal Oswal Nifty 500 Index Fund6330.030.159,5322024-07-24-93.36%
Edelweiss Nifty Smallcap 250 Index Fund2390.270.069,5322024-07-24-97.49%
Groww Nifty Total Market Index Fund420.020.019,5322024-07-24-99.56%
Motilal Oswal Nifty 500 ETF270.020.019,5322024-07-24-99.72%

Mastek Ltd ROCE Trend

Mastek Ltd EPS Trend

Mastek Ltd Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)98.0197.23106.5284.9245.21
Diluted EPS (Rs.)97.2595.53106.5281.8842.93
Cash EPS (Rs.)129.99123.74125.35117.5557.13
Book Value[Excl.RevalReserv]/Share (Rs.)681.07581.42406.96336.32303.06
Book Value[Incl.RevalReserv]/Share (Rs.)681.07581.42406.96336.32303.06
Revenue From Operations / Share (Rs.)990.53839.90727.46682.19441.30
PBDIT / Share (Rs.)170.13161.91166.09155.4681.00
PBIT / Share (Rs.)140.98139.83151.81137.6570.75
PBT / Share (Rs.)125.22140.03149.25134.4459.34
Net Profit / Share (Rs.)100.83101.66111.0799.7446.87
NP After MI And SOA / Share (Rs.)97.3796.0198.3182.9444.84
PBDIT Margin (%)17.1719.2722.8322.7818.35
PBIT Margin (%)14.2316.6420.8620.1716.03
PBT Margin (%)12.6416.6720.5119.7013.44
Net Profit Margin (%)10.1712.1015.2614.6210.62
NP After MI And SOA Margin (%)9.8311.4313.5112.1510.15
Return on Networth / Equity (%)14.2917.4027.5417.9313.44
Return on Capital Employeed (%)16.6717.7427.8522.2111.97
Return On Assets (%)8.169.3211.869.115.72
Long Term Debt / Equity (X)0.140.150.110.160.29
Total Debt / Equity (X)0.230.220.170.160.38
Asset Turnover Ratio (%)0.890.180.170.160.24
Current Ratio (X)1.441.691.781.871.85
Quick Ratio (X)1.441.691.781.871.85
Dividend Payout Ratio (NP) (%)0.0019.5916.106.5028.91
Dividend Payout Ratio (CP) (%)0.0015.9314.065.3523.53
Earning Retention Ratio (%)0.0080.4183.9093.5071.09
Cash Earning Retention Ratio (%)0.0084.0785.9494.6576.47
Interest Coverage Ratio (X)11.8019.9964.9248.4454.33
Interest Coverage Ratio (Post Tax) (X)8.0912.5344.4132.0839.09
Enterprise Value (Cr.)7924.504956.739576.732360.43479.67
EV / Net Operating Revenue (X)2.591.934.391.370.44
EV / EBITDA (X)15.1010.0319.216.022.44
MarketCap / Net Operating Revenue (X)2.561.834.561.790.42
Retention Ratios (%)0.0080.4083.8993.4971.08
Price / BV (X)3.722.799.302.640.56
Price / Net Operating Revenue (X)2.561.834.561.790.42
EarningsYield0.030.060.020.060.23

Mastek Ltd Profitability Ratios (%)

Mastek Ltd Liquidity Ratios

Mastek Ltd Liquidity Ratios (%)

Mastek Ltd Interest Coverage Ratios (%)

Mastek Ltd Valuation Ratios

Fair Value

Fair Value: 3,017.37

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 11.47% compared to the current price 2707

Intrinsic Value: 3,482.14

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 28.63% compared to the current price 2707

Last 5 Year EPS CAGR: 15.40%

*Investments are subject to market risks

Strength and Weakness of Mastek Ltd Stock

StrengthWeakness
  1. The stock has a low average Working Capital Days of 25.25, which is a positive sign.
  2. The company has higher reserves (841.17 cr) compared to borrowings (164.33 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (327.23 cr) and profit (166.92 cr) over the years.
  1. The stock has a low average ROCE of 14.25%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 70.42, which may not be favorable.

FAQ

What is the latest fair value of Mastek Ltd?

The latest fair value of Mastek Ltd is ₹3017.37.

What is the Market Cap of Mastek Ltd?

The Market Cap of Mastek Ltd is 8,358 Cr..

What is the current Stock Price of Mastek Ltd as on 25 July 2024?

The current stock price of Mastek Ltd as on 25 July 2024 is 2,707.

What is the High / Low of Mastek Ltd stocks in FY 2024?

In FY 2024, the High / Low of Mastek Ltd stocks is 3,147/1,964.

What is the Stock P/E of Mastek Ltd?

The Stock P/E of Mastek Ltd is 27.5.

What is the Book Value of Mastek Ltd?

The Book Value of Mastek Ltd is 681.

What is the Dividend Yield of Mastek Ltd?

The Dividend Yield of Mastek Ltd is 0.70 %.

What is the ROCE of Mastek Ltd?

The ROCE of Mastek Ltd is 18.1 %.

What is the ROE of Mastek Ltd?

The ROE of Mastek Ltd is 16.0 %.

What is the Face Value of Mastek Ltd?

The Face Value of Mastek Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Mastek Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE