Stock to buy in short-term: share price has given almost 12 percent returns in the past one month, but has fallen 7 percent in three months. However, in the last 1 year, the IT stock has shed over 25 percent.
However, analysts believe the Mastek stock is poised to see a decent upward momentum. HDFC Securities has recommended the Mastek shares as his ‘Pick of the week’.
“Mastek has built a consistent, predictable revenue stream in the UK’s public sector over the past few years. The company indicated that revenue growth momentum in the UK public sector could continue in the coming quarters on account of higher spending on digital-transformation initiatives by the UK government and the addition of logos. Further, growth momentum in the US business is expected to accelerate due to strong demand for its integrated digital commerce solutions, larger deal sizes, and new client additions,” explained the brokerage.
HDFC Securities’ Pick of the Week
Buy Mastek | Base Case Target Price: ₹2,460 | Bull Case Target Price: ₹2,685 | Time Horizon: 2-3 quarters
Mastek shares are currently trading at ₹2,235.24 apiece. The mid-cap stock is down nearly 34 per cent from its 52-week high of ₹3,375, hit in December 2024. Meanwhile, it touched its 52-week low of ₹1,882.90 in April 2025.
Mastek has been in the spotlight as the stock shows a powerful bullish pattern on the weekly chart.
HDFC Securities said investors could buy the stock in the ₹2210–2260 band and add on dips in the ₹2020–2060 range. The brokerage pegged the base-case fair value at ₹2460 and the bull-case fair value at ₹2685 over the next two to three quarters. At the last traded price of ₹2235, the stock was valued at 14.8x Sept 2027 estimated earnings, it said.
Fundamental View
According to HDFC Securities, Mastek had continued to improve its business profile and geographical presence, supported by increased scale and revenue diversification across segments. The brokerage noted that the company had maintained a long-standing relationship with the UK government. “Mastek has worked as a subcontractor to large on key UK government projects in the past,” HDFC Securities said.
The brokerage added that this relationship, combined with Mastek’s experience across government and private projects and its strong execution capabilities, positioned the company to benefit from the UK government’s digital spending. It said Mastek’s strategic focus included expanding the U.S. healthcare business, building secure government services in the U.K., account mining, and strengthening its data and AI offerings. “These strengths support our positive view on the stock,” HDFC Securities said.
Mastek Q2 Results
Net profit rose 5.9 percent QoQ and fell 24.3 percent YoY to ₹97 crore. The adjusted PAT margin stood at 10.4 percent in versus 10.1 percent in Q1FY26 and 14.9 percent in Q2FY25. Mastek’s revenue was in line with estimates, while net profit came in above expectations in Q2FY26.
The order pipeline and order backlog remained strong, and the company expected sustainable, profitable growth in FY26E and beyond. Consolidated revenue grew 2.8 percent QoQ and 8.4 percent YoY to ₹940 crore, and delivered 0.8 percent QoQ and 4.5 percent YoY growth in USD terms.
EBIT increased 7.4 percent QoQ and 3.8 percent YoY to ₹128 crore, while the EBIT margin expanded 60 bps QoQ due to delivery efficiencies and continued cost optimisation, and declined 60 bps YoY to 13.6 percent in Q2FY26.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.