Buy Mastek, target price Rs 2900: ICICI Direct

ICICI Direct has buy call on Mastek with a target price of Rs 2900. The current market price of Mastek Ltd. is Rs 2689.95. Time period given by analyst is one year when Mastek price can reach defined target.

Mastek Ltd., incorporated in the year 1982, is a Small Cap company (having a market cap of Rs 6878.46 Crore) operating in IT Software sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 521.17 Crore, up 7.14 % from last quarter Total Income of Rs 486.45 Crore and up 29.40 % from last year same quarter Total Income of Rs 402.76 Crore. Company reported net profit after tax of Rs 80.21 Crore in latest quarter.

Investment Rationale
Mastek’s share price has grown by ~18x over the past five years (from ~Rs 140 in July 2016 to ~Rs 2,499 in July 2021). The brokerage continues to remain positive and retain BUY rating on the stock

Promoter/FII Holdings
Promoters held 44 per cent stake in the company as of March 31, 2021, while FIIs held 6 per cent, DIIs 11 per cent and public and others 39 per cent.