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Buy Mastek; target of Rs 670: Anand Rathi

April 18
15:25 2019

Anand Rathi’s research report on Mastek

Mastek?s Q4 revenue was $ 37.9m, up 1.7% q/q, 9.5% y/y (CC: 1.9%, 15.2%). The UK slowed (up only 3.6% q/q, 16% y/y) on delays in projects signed/one ramp-down impact. The US performance dragged (down 4.8% q/q, 10% y/y) but restructuring measures are likely to yield results in FY20. The EBITDA margin rose to 13.2%, up 40bps q/q.

Outlook

On the in-line results, we retain our estimates and Buy call, with a target of `670 (12x FY21e). The Majesco stake contributes `91 a share.

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