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Last Updated on: 12 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Mastek Ltd: Share Price Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 11, 2024, 10:39 pm

Market Cap 9,989 Cr.
Current Price 3,240
High / Low3,375/2,137
Stock P/E27.2
Book Value 740
Dividend Yield0.59 %
ROCE18.0 %
ROE15.9 %
Face Value 5.00
PEG Ratio1.77

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Mastek Ltd

Competitors of Mastek Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Naapbooks Ltd 126 Cr. 139159/32.353.9 20.0%17.4 %13.6 %
IDream Film Infrastructure Company Ltd 1.41 Cr. 93.898.5/85.0 2950.00 %%% 10.0
IB Infotech Enterprises Ltd 26.0 Cr. 203245/11034.3 16.80.49 %69.9 %50.5 % 10.0
Hit Kit Global Solutions Ltd 6.54 Cr. 1.411.41/0.5820.4 2.080.00 %1.92 %1.94 % 2.00
Globalspace Technologies Ltd 69.8 Cr. 20.327.0/16.2212 15.70.00 %%% 10.0
Industry Average41,935.91 Cr823.8798.28122.690.58%21.17%59.71%6.95

All Competitor Stocks of Mastek Ltd

Quarterly Result

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: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

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%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)52.94%-65.38%-22.22%128.57%118.75%44.29%12.87%121.05%32.14%-6.91%
Change in YoY Net Profit Growth (%)0.00%-118.33%43.16%150.79%-9.82%-74.46%-31.41%108.18%-88.91%-39.05%

Mastek Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2013-2014 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:13%
5 Years:24%
3 Years:21%
TTM:13%
Compounded Profit Growth
10 Years:20%
5 Years:26%
3 Years:14%
TTM:35%
Stock Price CAGR
10 Years:26%
5 Years:54%
3 Years:5%
1 Year:34%
Return on Equity
10 Years:17%
5 Years:20%
3 Years:20%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:33 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital12111112121212121315151515
Reserves5215495853084575377047788461,0561,6682,0722,270
Borrowings22290667070335273203404519671
Other Liabilities2071922071081702021797631,1461,1931,0241,045725
Total Liabilities7427548324287058219661,8882,2772,4673,1113,6523,682
Fixed Assets247261279661801791678578078411,7401,9501,796
CWIP3010021224711
Investments40845450274284396276234266994105
Other Assets4524094983122513564017541,2351,5961,2961,6071,780
Total Assets7427548324287058219661,8882,2772,4673,1113,6523,682

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +80895932436575184287273108420
Cash from Investing Activity +-12-62-28-84-127-18-54-262218-26-719-249
Cash from Financing Activity +-43-6722-465-7-16205-118-128932
Net Cash Flow26-4053-57-20405127387119-519173

Free Cash Flow

MonthJun 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow24.0055.0088.0018.0018.00-21.0030.0062.00-179.0091.00260.0052.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days8046486755787410879737267
Inventory Days
Days Payable
Cash Conversion Cycle8046486755787410879737267
Working Capital Days4026283829173830-19-75021
ROCE %12%5%3%10%17%19%16%26%32%23%18%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters37.75%37.59%37.30%37.31%37.28%37.27%36.75%36.58%36.50%36.48%36.26%36.25%
FIIs4.16%4.84%6.62%8.01%13.04%13.25%13.14%13.42%13.93%14.10%14.40%14.03%
DIIs7.99%7.22%6.65%5.71%3.73%3.90%4.80%5.85%5.99%6.41%7.07%7.10%
Public50.10%50.35%49.43%48.96%45.96%45.58%45.30%44.14%43.56%43.01%42.26%42.59%
No. of Shareholders89,1771,09,9921,04,3761,06,1801,10,4451,07,6131,05,0431,05,47194,08190,28484,94991,456

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
ICICI Prudential Technology Fund250,5600.5155.342,0712024-12-1111998.5%
Tata Digital India Fund155,0700.4336.822,0712024-12-117387.69%
Nippon India Nifty Smallcap 250 Index Fund9,5320.272.262,0712024-12-11360.26%
Motilal Oswal Nifty Smallcap 250 Index Fund5,8240.271.382,0712024-12-11181.22%
SBI Nifty Smallcap 250 Index Fund4,5600.271.082,0712024-12-11120.18%
Quantum Small Cap Fund2,0711.710.492,0712024-12-110%
Motilal Oswal Nifty 500 Index Fund6330.030.152,0712024-12-11-69.44%
Edelweiss Nifty Smallcap 250 Index Fund2390.270.062,0712024-12-11-88.46%
Groww Nifty Total Market Index Fund420.020.012,0712024-12-11-97.97%
Motilal Oswal Nifty 500 ETF270.020.012,0712024-12-11-98.7%

ROCE Trend

EPS Trend

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.)676.85581.42406.96336.32303.06
Book Value[Incl.RevalReserv]/Share (Rs.)676.85581.42406.96336.32303.06
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 (%)14.3817.4027.5417.9313.44
Return on Capital Employeed (%)16.7517.7427.8522.2111.97
Return On Assets (%)8.149.3211.869.115.72
Long Term Debt / Equity (X)0.150.150.110.160.29
Total Debt / Equity (X)0.230.220.170.160.38
Asset Turnover Ratio (%)0.890.180.170.160.24
Current Ratio (X)1.421.691.781.871.85
Quick Ratio (X)1.421.691.781.871.85
Dividend Payout Ratio (NP) (%)19.3919.5916.106.5028.91
Dividend Payout Ratio (CP) (%)14.9215.9314.065.3523.53
Earning Retention Ratio (%)80.6180.4183.9093.5071.09
Cash Earning Retention Ratio (%)85.0884.0785.9494.6576.47
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 (%)80.6080.4083.8993.4971.08
Price / BV (X)3.752.799.302.640.56
Price / Net Operating Revenue (X)2.561.834.561.790.42
EarningsYield0.030.060.020.060.23

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Mastek Ltd as of December 12, 2024 is: 3,219.23

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.

As of December 12, 2024, Mastek Ltd is Overvalued by 0.64% compared to the current share price 3,240.00

Intrinsic Value of Mastek Ltd as of December 12, 2024 is: 3,715.09

Calculation basis:

  • Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 12, 2024, Mastek Ltd is Undervalued by 14.66% compared to the current share price 3,240.00

Last 5 Year EPS CAGR: 15.40%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.08%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 24.25, which is a positive sign.
  3. The company has higher reserves (950.08 cr) compared to borrowings (203.38 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (327.23 cr) and profit (166.92 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 70.58, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Mastek Ltd:
    1. Net Profit Margin: 10.17%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 16.75% (Industry Average ROCE: 20.21%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 14.38% (Industry Average ROE: 54.83%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 8.09
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.42
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 27.2 (Industry average Stock P/E: 78.62)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.23
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

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 DesaiChairman (Non - Executive) & Non Independent Direc
Mr. Rajeev Kumar GroverInd.& Non Exe.Director
Mr. Ketan MehtaNon Exe.Non Ind.Director
Mr. Suresh VaswaniNon Exe. & Ind. Director
Mr. Umang NahataNon Exe.Non Ind.Director
Ms. Marilyn JonesNon Exe. & Ind. Director

FAQ

What is the latest intrinsic value of Mastek Ltd?

The latest intrinsic value of Mastek Ltd as on 12 December 2024 is ₹3219.23, which is 0.64% lower than the current market price of ₹3,240.00. The stock has a market capitalization of 9,989 Cr. and recorded a high/low of ₹3,375/2,137 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹2,270 Cr and total liabilities of ₹3,682 Cr.

What is the Market Cap of Mastek Ltd?

The Market Cap of Mastek Ltd is 9,989 Cr..

What is the current Stock Price of Mastek Ltd as on 12 December 2024?

The current stock price of Mastek Ltd as on 12 December 2024 is 3,240.

What is the High / Low of Mastek Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Mastek Ltd stocks is 3,375/2,137.

What is the Stock P/E of Mastek Ltd?

The Stock P/E of Mastek Ltd is 27.2.

What is the Book Value of Mastek Ltd?

The Book Value of Mastek Ltd is 740.

What is the Dividend Yield of Mastek Ltd?

The Dividend Yield of Mastek Ltd is 0.59 %.

What is the ROCE of Mastek Ltd?

The ROCE of Mastek Ltd is 18.0 %.

What is the ROE of Mastek Ltd?

The ROE of Mastek Ltd is 15.9 %.

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