At a Glance
Mastek isnât your average midcap IT firm. With a 40-year history, it now builds digital platforms for governments, healthcare systems, and Fortune 500s. But after a dream run to âš3,375 in 2023, the stockâs now languishing at âš2,507. Are margins dying? Or is this the calm before another SaaS-style surge?
1ď¸âŁ Whatâs Mastekâs Game? (Hint: Not Just Body Shopping)
Mastek has:
- 40+ years of legacy
- Clients across UK, US, Middle East
- Key verticals: Govt (UK NHS, HMRC), Retail, Healthcare, Financial Services
- Recent buzzword drop:ADOPT.AIplatform launched in June 2025 to drive enterprise GenAI transformation đ§ đť
So itâs not Wipro-scale, but itâs alsonot a service desk sweatshop.
âď¸ Key Services:
- Digital
- transformation (Govt, BFSI)
- Application dev + legacy modernization
- Data engineering + BI
- Testing & Assurance
- Cybersecurity (recent NHS deal for training boards)
2ď¸âŁ Financials: Decent Growth, Margin Woes đŹ
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (âš Cr) | 1,722 | 2,184 | 2,563 | 3,055 | 3,455 |
| Net Profit (âš Cr) | 252 | 333 | 310 | 311 | 376 |
| OPM (%) | 21% | 21% | 18% | 17% | 16% |
| ROCE (%) | 26% | 32% | 23% | 18% | 17% |
| EPS (âš) | 82.97 | 98.32 | 95.99 | 97.36 | 121.50 |
đ Margins peaked in FY22đ Net profit CAGR (3Y): only 9%đ ROCE dropped from 32% â 17%
But:â TTM PAT growth = 23%â Revenue up 13% YoYâ FY25 dividend maintained (19% payout)
So itâs stillprofitable and consistent, just not exciting right now.
3ď¸âŁ
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