Mehabe score: 3 G Factor: 4 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 7.
Description
Established in 1982, Mastek is a provider of vertically-focused enterprise technology solutions. Having its presence in IT industry for almost 4 decades, Mastek Ltd has evolved from an IT solutions provider to Digital transformation partner.[1] Site:MASTEK Main Symbol:MASTEK
Stock trades at 2841.0, below its 50dma 2983.33. However it is trading above its 200dma 2668.33. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 2983.33.
The 52 week high is at 3669.00 and the 52week low is at 1318.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 55.37% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 25.47%
-Debtor days have improved from 83.22 to 62.66 days.
Weakness
– Stock is trading at 9.99 times its book value
-Promoter holding has decreased over last 3 years: -8.39%
Competition
– The industry trades at a mean P/E of 31.6x. Tata Elxsi trades at the industry’s max P/E of 97.4x. MASTEK trades at a P/E of 28.9x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 9.0. MASTEK has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is -4.5%. The max 1- month return was given by Tata Elxsi: a return of 3.91 %
Quarterly Results
Sales for period ended Mar 2022 is Rs 582.0 cr compared to Rs 483.0 cr for period ended Mar 2021, a rise of 20.5% .
vis-vis 106.0 for period ended Mar 2021 .
Operating Margins contracted -115.6 bps for period ended Mar 2022 vis-vis Mar 2021.
Company reported operating profit of Rs 121.0 cr for period ended Mar 2022 and operating profit margin at 20.8 % for same period.
The EPS for quarter ended Mar 2022 is Rs 26.62 compared to Rs 24.77 for previous quarter ended Dec 2021 and Rs 24.0 for Mar 2021.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2184.0 cr for period ended Mar 2022 vis-vis sales of Rs 1722.0 cr for the period ended Mar 2021, a healthy growth of 21.2%. The 3 year sales cagr stood at 28.3%.
Net Profit reported at Rs 295.0 cr for period ended Mar 2022 vis-vis sales of Rs 209.0 cr for the period ended Mar 2021, rising 29.2%.
Company recorded a healthy Net Profit CAGR of 42.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 34.0% compared to 25.0% over the last 3 Years. – The stock has given a return of 107% on a 1 Year basis vis-vis a return of 83% over the last 3 Years. – The compounded sales growth on a TTM bassis is 27% vis-vis a compounded sales growth of 28% over the last 3 Years. – The compounded profit growth on a TTM basis is 44% vis-vis a compounded profit growth of 46% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2022 fii holding stood at 6.62% vis-vis 4.84% for Dec 2021 – Public shareholding has remained largely constant. The Mar 2022 public holding stood at 49.43% vis-vis 50.35% for Dec 2021
Conclusion
– has delivered good profit growth of 55.37% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 25.47%
-Debtor days have improved from 83.22 to 62.66 days. – Stock is trading at 9.99 times its book value
-Promoter holding has decreased over last 3 years: -8.39%
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains below its 50 DMA 2983.33 and is trading at 2841.0. Shows a near term lack of buying interest.
