Mastek Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Mastek Ltd trades at ₹1,626, in a downtrend and 51 weeks into that stage. That is −10.7% against its own 200-day average. It sits at 26% of a 52-week range of ₹1,398 to ₹2,269. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 7 straight weeks.

Today the stock is in a downtrend — week 51 of stage 4, confirmed. At ₹1,626 it trades −10.7% versus its 200-day average and sits at 26% of its 52-week range (₹1,398–₹2,269).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +1,265% while the NIFTY 500 moved +267% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 7 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Mastek Ltd trades at 11.5× P/E, near the bottom of its own range — cheaper only 15% of the time. Its long-run median P/E is 17.8×, measured across 10.5 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 11.5× is near the bottom of its own range — cheaper only 15% of the time, against a long-run median of 17.8× measured over 10.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +7.3% against a −33.7% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the −10.9%/yr price move, ~+8.2%/yr came from earnings growth and ~−19.1 pp from the multiple (compressing); over 10y, of the +29.0%/yr price move, ~+39.3%/yr came from earnings growth and ~−10.3 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

The PEG ratio and its quarterly curve, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 4.6% on reported income across 15 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 13 June 2026 price, Mastek Ltd was paying for profit growth of about 4.2% a year. Profit itself has compounded 40.0% a year over the past 10 years. Today the market pays 11.5× P/E, the 15th percentile of its own 11-year range.

What the two numbers say together. The multiple is low against its own past, and the growth the price is paying for is below what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 13 June 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Mastek Ltd reads as consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROCE at 18.0% and holding. The read is built from 8 quarters across 4 curves, on partial evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

47.9/100 — rank 38 of 64 in IT - Software · 82% evidence confidence

Mastek Ltd scores 47.9 out of 100 against the 64 companies it is compared with in IT - Software, ranking 38. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 13.8 + 13.3 + 12.6 + 8.2 = 47.9. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Mastek Ltd reported ₹985 Cr of revenue in the Jun 26 quarter, +7.7% year on year. That is the 11th straight quarter of year-on-year growth. Over 10 years it has compounded at 21.5% a year. The last full year, FY26, came in at ₹3,699 Cr. The last four reported quarters add to ₹3,769 Cr.

FY26 revenue came in at ₹3,699 Cr (+7.1% on the year), capping 10 years at 21.5% compound. The latest quarter (Jun 26) printed ₹985 Cr, +7.7% year on year — the 11th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +6.0% growth against the decade's 21.5% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +6.0% over the last 4 quarters against +9.5%/yr over the last 8 — rolling over; TTM profit +5.0% vs +16.2%/yr — rolling over.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Mastek Ltd's operating margin is 15.0% in the Jun 26 quarter, +0.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 3.5% to 21.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 15.0%, +0.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 3.5%–21.0%.

Why the margin moved: operating margin went +0.3 pp year on year while gross margin went +0.0 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Mastek Ltd earned ₹106 Cr of net profit in the Jun 26 quarter, +15.2% year on year. It is the 3rd consecutive quarter of growth. Full-year FY26 profit was ₹404 Cr. The 10-year compound rate is 40.0%. That is 10.8% of the quarter's revenue. The same quarter a year earlier earned ₹92.0 Cr.

Jun 26 profit was ₹106 Cr, +15.2% year on year — the 3rd consecutive quarter of growth. On the full year, FY26 printed ₹404 Cr (+7.4%), and the 10-year compound rate is 40.0%.

Why profit moved: revenue contributed +7.7% and the margin +0.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +8.8% vs revenue +6.0%. Profit and revenue are moving roughly in step.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 124% of Mastek Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹542 Cr of operating cash against ₹404 Cr of profit. After ₹193 Cr of capital spending, ₹349 Cr was left as free cash.

FY26: operating cash of ₹542 Cr against reported profit of ₹404 Cr, leaving free cash of ₹349 Cr after ₹193 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 124% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 124%: the cash cycle tightened 22 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 1.8× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Mastek Ltd's cash conversion cycle runs 57 days in FY26, down from 79 days in FY21. Capital spending ran ₹431 Cr over the last 3 years. At FY26 sales of ₹3,699 Cr each day of that cycle holds about ₹10.1 Cr, so roughly ₹578 Cr sits inside the business at any moment.

FY26: debtors at 57 days (an asset-light business — no inventory to speak of) — for a full cycle of 57 days, tighter than FY21's 79.

In money terms: at FY26 sales of ₹3,699 Cr, each day of the cycle holds about ₹10.1 Cr — so the 57-day loop keeps roughly ₹578 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹431 Cr over the last 3 fiscal years against ₹238 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹2.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Mastek Ltd earns a ROCE of 18% in FY26. That is up from a trough of 3% in FY16. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 10.9% net margin on 0.86× asset turns.

FY26 ROCE is 18%, recovered from a FY16 trough of 3% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 10.9% net margin × 0.86× asset turns × 1.43× balance-sheet leverage ≈ 13.4% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The quarterly return curves and the return-on-invested-capital overlay, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 4.6% on reported income across 15 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Mastek Ltd carries ₹438 Cr of borrowings against ₹2,992 Cr of equity in FY26, a debt-to-equity of 0.15. Operating profit covers the interest bill 18×. Over 5 years borrowings went from ₹273 Cr to ₹438 Cr. Capital spending ran ₹431 Cr across the last 3 of those years.

FY26: borrowings of ₹438 Cr against equity of ₹2,992 Cr — a debt-to-equity of 0.15. Operating profit covers the interest bill 18×. Over 5 years borrowings went from ₹273 Cr to ₹438 Cr while capital spending ran ₹431 Cr in just the last 3 — part of the build-out is riding on borrowed money.

The total-debt and debt-to-equity series, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 4.6% on reported income across 15 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 12.8 points of Mastek Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 19.9% of the company. Foreign institutions moved −6.6 points over the same window, to 7.5%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +12.8 points over 8 quarters to 19.9%; Foreign institutions: −6.6 points over 8 quarters to 7.5%; Promoters: −0.5 points over 8 quarters to 35.8%.

Why the register moved: rotation — foreign institutions −6.6 points against domestic institutions +12.8 points over 8 quarters, with promoters −0.5 points — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Mastek Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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