VN Research & Consulting
 Like us on facebook  Follow us on twitter  Follow us on LinkedIn  IndiaNotes on Google Plus  IndiaNotes on Pinterest  IndiaNotes on Stumbleupon  Subscribe to our feeds


Stocks  A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Go
Feedback
You are here : IndiaNotes >> Research & Analysis >> Companies >> Mastek Ltd. >> Research

Positional Call: Buy Mastek Ltd for upside of 46% in 3 months - Rudra Shares

  • Rate this article
    (Average Rating 0.0 Based on 0 ratings)



TAISTech acquisition --> Accelerate its growth into the US market

  • Strong growth of 43.6%in terms of revenue on Y-O-Y basis.
  • Strong growth of 154%at EBITDA level i.e. Rs. 24.8 crore in Q1FY18 compared to an EBITDA Rs. 9.8 crore in Q1FY17
  • Strong margin recovery at EBITDA level i.e. 13.39% in Q1 FY 18 compared to 7.56% in Q1 FY 17.
  • Strong growth of 525% in terms of PATon Y-O-Y basis, thereby increase in EPS to Rs. 6.24 during Q1 FY 18
  • Company added 12 new accounts billed during the quarter in Q1FY18, takingtotal count to 161as of 30th June, 2017.
  • Company's 12-month order backlog was Rs. 344.6 crore as on 30th June, 2017 compared to Rs. 333.2 crore at the end of Mar’17, reflecting a growth of 3% Q-o-Q.


Acquisition has created a platform for Mastek's accelerated growth in the US market and will augment Mastek's 2020 vision to be a global leader in digital transformation services and will provide the much-needed scale to compete and win large-scale transformation programs from both existing clients as well as new markets.


TAISTech provides strategic consulting, large-scale digital commerce implementations and support for the Oracle Commerce and Oracle Commerce Cloud applications. This acquisition will also grow its service portfolio by leveraging Mastek's strength in Data Warehousing, Business Intelligence and Analytics, Enterprise Testing and Agile Process Consultancy Services.


UK continues to contribute bulk of its business:-


Mastek UK is registered with the G Cloud and the GDS frameworks, which has helped create a good pipeline of opportunities in the government sector in UK. Mastek UK continued positioned largely in UK, as 69% of its business comes from this region during Q1 FY 18 and ranked among the top three vendors in delivering large complex programs in agile manner and helping government to cut cost and time in delivery. The company order book and pipeline are strong in both public and private sector and new opportunities have been identified. This has given a base for building up growth and profitability, going forward.


  • Stellar Performance- Bodes well for company
  • Strong growth of 43.6%in terms of revenue on Y-O-Y basis.
  • Strong growth of 154%at EBITDA level i.e. Rs. 24.8 crore in Q1FY18 compared to an EBITDA Rs. 9.8 crore in Q1FY17
  • Strong margin recovery at EBITDA level i.e. 13.39% in Q1 FY 18 compared to 7.56% in Q1 FY 17.
  • Strong growth of 525% in terms of PATon Y-O-Y basis, thereby increase in EPS to Rs. 6.24 during Q1 FY 18
  • Company added 12 new accounts billed during the quarter in Q1FY18, takingtotal count to 161as of 30th June, 2017.
  • Company's 12-month order backlog was Rs. 344.6 crore as on 30th June, 2017 compared to Rs. 333.2 crore at the end of Mar’17, reflecting a growth of 3% Q-o-Q


Company have continued to deliver steady revenue growth which positions the company well for future success with its customers. Its fundamentals are encouraging with strong contributions from both organic and inorganic activities measured by good growth momentum in 12-months order backlog and adding 12 new clients.


Digital India and ‘e-governance agenda has boosted the domestic market enormously.


It is expected that the governments several efforts and investments in digitization, infrastructure development, implementing technology in healthcare, manufacturing and agriculture sectors will provide an opportunity of growth in IT services sector. The impact of GST on IT sector has attract 18% on software services provided by software companies. For purely software services, the cost of such services will increase under GST. Although the GST rate for services has increased to 18%, IT industry will definitely benefit from GST, with the immense boost in the sale of the software there will be overall increase in profitability of the IT sector.


Company will continue to invest in agile methodologies in line with its aspiration of being involved in large and complex transformation programs which will help its customers to leverage digital opportunities in agile manner. Overall, the Company is geared up to make rapid progress in Digital Transformation space and accelerate its growth in US and UK markets. It is well poised to become a leader and sees significant traction in agile and digital transformation solutions and expects to have a predictable and profitable financial performance in the coming years.


 


  Read full report Click here to read the full report

logo
BSE
331.10 -2.80
(-0.84%)
NSE
330.30 -3.20
(-0.96%)
Read More
About Rudra Shares and Stock Brokers

RUDRA is one of the growing & dynamic brokerage houses with a strong presence in the Retail and HNI broking segment. With over 25 years of experience and lead by a team with outstanding managerial acumen, RUDRA is a professionally managed company supported by over 100 professionals, including Chartered Accountants, MBAs and other senior executives. RUDRA can thereby cater to its clients' short-term as well as long-term financial needs through a comprehensive bouquet of investment services. RUDRA offers a diverse range of financial services, including institutional and retail brokerage of Equity, Currency, Commodities, Derivatives, Online Trading, Depository Services, Fixed Deposits, IPOs and Mutual Funds Distribution, and Wealth Advisory & Research. RUDRA is looking to become one of the biggest broking houses. RUDRA Securities Limited, is a member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited, MCX Stock Exchange, and Depository Participant of Central Depository Services (I) Limited. RUDRA can be approached online at www.rudrashares.com.

 

For more information please write in to [email protected]

Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.




Technical Calls

What are technical calls?

Other Articles


Have a question?