Mastek Limited

Technology — Information Technology Services · NSE

₹1,830.00+₹73.80 (+4.20%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with modest growth. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Mastek Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Mastek Limited, together with its subsidiaries, engages in the provision of enterprise technology solutions in India, the United Kingdom, Europe, North America, Middle East region, South-east Asia, India, Singapore, Australia, and internationally.

IndustryInformation Technology Services

SectorTechnology

Employees4,132

Annual revenue₹3,694 Cr

How does it make money?

Turns over ₹3,694 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 4,132 employees supports ₹89.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹89.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 16.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE32.0%

What is the outlook?

5 analysts covering the stock expect revenue to grow about 8.0% and earnings to grow about 11.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+8.0%

Est. earnings growth+11.7%

Analysts5

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +44% while net margin moved -5% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+44%

Margin effect-5%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

• ROE of 13.5% is moderate
✗ ROE has fallen by 3.9 points over the period

Quality vs. Valuation

Company Quality

68/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

76/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

13.7x

3Y Median

23.9x

40 monthly readings · mean 22.1x · range 11.1x–32.6x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 43% below its 3y median of 23.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 17% below the peer median of 16.5x.

vs. its own history

Cheap

23.9x median over 40 months · -43%

vs. sector peers

Fair

16.5x median of 4 peers · -17%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.0x

PEG

1.21

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 574% over 3 years.
Very low debt
Debt/Equity of 0.15x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 17.4% to 13.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 18.8% to 16.6% — often a sign of competition or overexpansion.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 43% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹514 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 17.4% to 13.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 13.0% CAGR
Latest reported year was 7.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 18.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹514 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 16.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹5,675 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.7x

Cheap

Cheap against the generic band

P/B Ratio

1.83x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹133.89

Profitable

Profitable on a per-share basis

ROE

13.5%

Moderate

Moderate capital efficiency

ROCE

16.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

7.7%

Modest

Modest growth

Profit Growth (YoY)

15.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.31%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹514 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

11.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

13.5%

Average

Average margins

Net Margin

11.1%

Good

Strong bottom-line conversion

Current Ratio

2.16

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.28

Defensive

Steadier than the market

52W Range Position

48%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1624.9 / 1688.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

77.6

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,558 Cr	₹3,049 Cr	₹3,448 Cr	₹3,694 Cr	+13.0%
EBITDA	₹491 Cr	₹535 Cr	₹455 Cr	₹676 Cr	+11.2%
EBITDA Margin	19.2%	17.6%	13.2%	18.3%	—
PAT (Net Profit)	₹293 Cr	₹300 Cr	₹376 Cr	₹404 Cr	+11.3%
EPS	₹95.53	₹97.25	₹120.65	₹129.5	+10.7%
ROE	17.4%	14.4%	15.3%	13.5%	—
ROCE	18.8%	16.5%	17.1%	16.6%	—
Total Debt	₹404 Cr	₹519 Cr	₹583 Cr	₹438 Cr	+2.7%
Free Cash Flow	₹76 Cr	₹389 Cr	₹376 Cr	₹514 Cr	+88.9%

🟢 Revenue has grown at 13.0% a year over 3 years.

🟢 EBITDA has grown at 11.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 18.3% over 3 years.

🟢 PAT (Net Profit) has grown at 11.3% a year over 3 years.

🟢 EPS has grown at 10.7% a year over 3 years.

🔴 ROE has fallen from 17.4% to 13.5% over 3 years (-3.9 pts).

🔴 ROCE has fallen from 18.8% to 16.6% over 3 years (-2.2 pts).

🔴 Total Debt has grown at 2.7% a year over 3 years.

🟢 Free Cash Flow has grown at 88.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,309 Cr

Total Liabilities

₹1,317 Cr

Cash & Equivalents

₹704 Cr

Operating Cash Flow

₹542 Cr

Capex

-₹28 Cr

Shareholding (proxy)

Institutional Holding

24.6%

Insider Holding

49.2%

Corporate Actions

Next Earnings

23 Oct 2026

Dividend Rate

₹24

Ex-Dividend Date

31 Aug 2026

Analyst Consensus

Recommendations

3 Buy · 1 Hold · 1 Sell

Target Price (Mean)

₹1,884.2

+3.0% vs CMP

Target Range

₹1,600 – ₹2,070

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 positive4 mixed1 general

Mastek Ltd (MASTEK) Share Price

Business Today, 16 Oct

MASTEK Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Mastek Share Price Target 2027: Base and Bull Case

Univest, 09 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Should You Buy Mastek Limited (NSE:MASTEK) For Its Upcoming Dividend?

Simply Wall Street, 27 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Mastek shares defy weak markets, gain 3% after Staffordshire County council picks company for Oracle Cloud

The Economic Times, 08 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Mastek and CORT Win ISG Partnership Award; Shares Fall 2.02%

HDFC Sky, 12 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation · Risk

MiddlingGrowth · Profitability

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 5 tripwires holding · see Key things to watch ↑