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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

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

Mastek Ltd. Share Price Update

Share PriceValue
Today₹2,942.05
Previous Day₹2,981.15

Basic Stock Data of Mastek Ltd

Market Cap 9,095 Cr.
Current Price 2,965
High / Low3,147/1,475
Stock P/E32.1
Book Value 585
Dividend Yield0.65 %
ROCE23.4 %
ROE19.9 %
Face Value 5.00

Data Source: screener.in

Competitors of Mastek Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Wipro Ltd 2,79,118 Cr. 534546/35224.7 1330.19 %17.7 %15.9 % 2.00
Ajel Ltd 18.9 Cr. 16.220.7/6.86 12.90.00 %0.55 %0.91 % 10.0
Happiest Minds Technologies Ltd 13,265 Cr. 8711,023/76354.8 90.40.61 %27.4 %28.9 % 2.00
Rolta India Ltd 62.2 Cr. 3.754.06/1.45 5470.00 %6.48 %% 10.0
Tanla Platforms Ltd 13,434 Cr. 9991,318/49325.0 1300.97 %37.9 %31.2 % 1.00
Industry Average61,179.62 Cr484.7920.90182.660.35%18.01%15.38%5.00

Mastek Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales410443483516534552582570625659709725766
Expenses323339377404421436461461518545584598642
Operating Profit87104106113113116121109107114126127123
OPM %21%23%22%22%21%21%21%19%17%17%18%18%16%
Other Income4435861826326-021
Interest22222232589913
Depreciation12121010101112111720202021
Profit before tax779497106108110124122117929610090
Tax %23%25%22%24%25%24%29%31%27%27%25%27%28%
Net Profit59707680828388848667737465
EPS in Rs20.7623.0324.0027.4224.3824.7726.6225.6826.3021.3323.7722.9120.50

Mastek Ltd Quarterly Chart

Mastek Ltd Profit & Loss

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:14%
5 Years:26%
3 Years:34%
TTM:23%
Compounded Profit Growth
10 Years:24%
5 Years:32%
3 Years:31%
TTM:-1%
Stock Price CAGR
10 Years:30%
5 Years:52%
3 Years:36%
1 Year:78%
Return on Equity
10 Years:16%
5 Years:22%
3 Years:24%
Last Year:20%

Mastek Ltd Balance Sheet

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

MonthJun 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -480895932436575184287273108
Cash from Investing Activity 16-12-62-28-84-127-18-54-262218-26-719
Cash from Financing Activity -14-43-6722-465-7-16205-118-12893
Net Cash Flow-226-4053-57-20405127387119-519

Mastek Ltd Financial Efficiency Indicators

MonthJun 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days9080464867557874108797372
Inventory Days
Days Payable
Cash Conversion Cycle9080464867557874108797372
Working Capital Days534026283829173830-19-750
ROCE %0%8%12%5%3%10%17%19%16%26%32%23%

Mastek Ltd Financial Efficiency Indicators Chart

Mastek Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters44.25%44.32%44.25%37.75%37.59%37.30%37.31%37.28%37.27%36.75%36.58%36.50%
FIIs5.39%6.51%5.67%4.16%4.84%6.62%8.01%13.04%13.25%13.14%13.42%13.93%
DIIs14.27%11.98%10.72%7.99%7.22%6.65%5.71%3.73%3.90%4.80%5.85%5.99%
Public36.09%37.19%39.36%50.10%50.35%49.43%48.96%45.96%45.58%45.30%44.14%43.56%
No. of Shareholders30,91043,82758,70689,1771,09,9921,04,3761,06,1801,10,4451,07,6131,05,0431,05,47194,081

Mastek Ltd Shareholding Pattern Chart

No. of Mastek Ltd Shareholders

Mastek Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
ICICI Prudential Technology Fund2505600.5155.34
Tata Digital India Fund1550700.4336.82
Nippon India Nifty Smallcap 250 Index Fund95320.272.26
Motilal Oswal Nifty Smallcap 250 Index Fund58240.271.38
SBI Nifty Smallcap 250 Index Fund45600.271.08
Quantum Small Cap Fund20711.710.49
Motilal Oswal Nifty 500 Index Fund6330.030.15
Edelweiss Nifty Smallcap 250 Index Fund2390.270.06
Groww Nifty Total Market Index Fund420.020.01
Motilal Oswal Nifty 500 ETF270.020.01

Mastek Ltd ROCE Trend

Mastek Ltd EPS Trend

Mastek Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)97.23106.5284.9245.2142.61
Diluted EPS (Rs.)95.53106.5281.8842.9340.32
Cash EPS (Rs.)123.74125.35117.5557.1349.55
Book Value[Excl.RevalReserv]/Share (Rs.)581.42406.96336.32303.06298.75
Book Value[Incl.RevalReserv]/Share (Rs.)581.42406.96336.32303.06298.75
Revenue From Operations / Share (Rs.)839.90727.46682.19441.30430.86
PBDIT / Share (Rs.)161.91166.09155.4681.0065.19
PBIT / Share (Rs.)139.83151.81137.6570.7557.95
PBT / Share (Rs.)140.03149.25134.4459.3455.63
Net Profit / Share (Rs.)101.66111.0799.7446.8742.31
NP After MI And SOA / Share (Rs.)96.0198.3182.9444.8442.31
PBDIT Margin (%)19.2722.8322.7818.3515.12
PBIT Margin (%)16.6420.8620.1716.0313.45
PBT Margin (%)16.6720.5119.7013.4412.91
Net Profit Margin (%)12.1015.2614.6210.629.82
NP After MI And SOA Margin (%)11.4313.5112.1510.159.82
Return on Networth / Equity (%)17.4027.5417.9313.4414.16
Return on Capital Employeed (%)17.7427.8522.2111.9716.98
Return On Assets (%)9.3211.869.115.7210.28
Long Term Debt / Equity (X)0.150.110.160.290.09
Total Debt / Equity (X)0.220.170.160.380.09
Asset Turnover Ratio (%)0.180.170.160.240.32
Current Ratio (X)1.691.781.871.852.87
Quick Ratio (X)1.691.781.871.852.87
Dividend Payout Ratio (NP) (%)19.5916.106.5028.9117.62
Dividend Payout Ratio (CP) (%)15.9314.065.3523.5315.04
Earning Retention Ratio (%)80.4183.9093.5071.0982.38
Cash Earning Retention Ratio (%)84.0785.9494.6576.4784.96
Interest Coverage Ratio (X)19.9964.9248.4454.3325.50
Interest Coverage Ratio (Post Tax) (X)12.5344.4132.0839.0917.46
Enterprise Value (Cr.)4956.739576.732360.43479.671038.85
EV / Net Operating Revenue (X)1.934.391.370.441.01
EV / EBITDA (X)10.0319.216.022.446.65
MarketCap / Net Operating Revenue (X)1.834.561.790.421.03
Retention Ratios (%)80.4083.8993.4971.0882.37
Price / BV (X)2.799.302.640.561.48
Price / Net Operating Revenue (X)1.834.561.790.421.03
EarningsYield0.060.020.060.230.09

Mastek Ltd Profitability Ratios (%)

Mastek Ltd Liquidity Ratios

Mastek Ltd Liquidity Ratios (%)

Mastek Ltd Interest Coverage Ratios (%)

Mastek Ltd Valuation Ratios

Fair Value of Mastek Ltd Stock

Fair Value: ₹3761.21

The stock is undervalued by 26.85% compared to the current price ₹2965

*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 26.92, which is a positive sign.
  2. The company has higher reserves (792.92 cr) compared to borrowings (151.54 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 is trading at a high valuation with an average P/B ratio of 111.60 and average Dividend Yield of 17.43%.
  2. The stock has a low average ROCE of 14.25%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 72.50, which may not be favorable.

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