HDFC Securities has maintained its ‘Add’ rating on Mastek, with a target price of ₹4,000, indicating a notable upside from the current market price (CMP) of ₹3,247.00.
The brokerage expects organic growth to recover to double digits, supported by an expansion in margins to the high teens. Growth is anticipated to be driven by the revival in the UK geography, which contributes ~60% of Mastek’s revenue. The company is witnessing strong traction across both the UK government and the UK private segment.
Key drivers include an increase in digital spending in areas like defence and healthcare, early signs of recovery in the NHS with new deals on the horizon, and incremental revenue from a defence deal, expected to add USD 50-60 million over the next three years.
Disclaimer: The above is for informational purposes only. Please consult a financial advisor before making any investment decisions.