Analysts Bullish on Mastek Despite Recent Volatility
Mastek shares have emerged as a compelling investment opportunity according to HDFC Securities, which has named the IT stock its 'Pick of the Week'. This recommendation comes despite mixed performance across different timeframes. The stock has delivered nearly 12 percent returns over the past month, though it has declined by 7 percent in three months and shed over 25 percent in the last year.
Technical Setup and Price Targets
Currently trading at ₹2,235.24 per share, Mastek displays a powerful bullish pattern on weekly charts according to technical analysis. HDFC Securities suggests investors could buy the stock in the ₹2210–2260 range and consider adding more during dips to ₹2020–2060.
The brokerage has established a base case target price of ₹2,460 and a bull case target of ₹2,685 with a time horizon of two to three quarters. At current levels, this represents potential upside of approximately 10-20%. The mid-cap stock remains down nearly 34 percent from its 52-week high of ₹3,375 hit in December 2024, while it touched its 52-week low of ₹1,882.90 in April 2025.
Strong Fundamentals Support Optimistic Outlook
Mastek has developed a consistent, predictable revenue stream from the UK public sector over recent years. The company indicates this growth momentum should continue due to higher digital transformation spending by the UK government and the addition of new clients.
HDFC Securities highlighted Mastek's longstanding relationship with the UK government, where it has previously worked as a subcontractor to large IT companies on key projects. This experience, combined with the company's execution capabilities, positions it well to benefit from ongoing digital spending initiatives.
The US business also shows promising signs, with growth expected to accelerate due to strong demand for integrated digital commerce solutions, larger deal sizes, and new client acquisitions. The company's strategic focus includes expanding its US healthcare vertical, building secure government services in the UK, account mining, and strengthening data and AI offerings.
Quarterly Performance Highlights
Mastek's Q2FY26 results demonstrated mixed but generally positive trends:
- Net profit increased 5.9 percent quarter-over-quarter to ₹97 crore
- Revenue grew 2.8 percent QoQ and 8.4 percent year-over-year to ₹940 crore
- EBIT rose 7.4 percent QoQ to ₹128 crore
- EBIT margin expanded 60 basis points quarter-over-quarter to 13.6%
The company maintained a strong order pipeline and backlog, with expectations of sustainable, profitable growth throughout FY26 and beyond. While revenue met analyst expectations, net profit exceeded forecasts during the quarter.
Disclaimer: The views and recommendations above are from individual analysts or broking companies, and not of Mint. Investors should consult certified experts before making investment decisions.
