Shares of Mastek Ltd have fallen over 45 per cent from their 52-week high in 10 months. The stock of the software services firm hit their 52-week high on October 19, 2021 and fell to their 52-week low on June 20, 2022. The IT sector stock was trading at Rs 1,955 today, down 1.60 per cent against the previous close of Rs 1987.15. The share has lost 45.79 per cent from its 52-week high in comparison to the previous closing level.
Market cap of Mastek Ltd fell to Rs 5,878.76 crore. Shares of Mastek Ltd touched an intraday low of Rs 1,947.25, down 2.01 percent on BSE.
A total of 1,688 shares of the firm changed hands, amounting to a turnover of Rs 33.04 lakh on BSE. Mastek stock is trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The stock has fallen 21 per cent in a year and lost 35 per cent in 2022.
Q1 Earnings
The stock has lost 4.39 per cent or Rs 91 since it announced its earnings for the quarter ended June 2022. The earnings were announced on July 20 and the stock closed at Rs 2,078.4 in the same session. Mastek reported a 11 per cent rise in net profit to Rs 77.16 crore in the last quarter against Rs 69.30 crore profit in the corresponding period of the previous fiscal.
Sales rose 10.41 per cent to Rs 570.25 crore in the last quarter against Rs 516.47 crore in the corresponding quarter of the previous fiscal.
However, earnings per share fell 4.81 per cent to Rs 25.15 in the June quarter against Rs 26.42 in the June quarter of the previous fiscal. On a quarter-on-quarter basis, net profit fell 3.43 per cent from Rs 79.90 crore in the March 2022 quarter. Sales declined 1.94 per cent from Rs 581.53 crore in the March quarter of the previous fiscal.
Shareholding Pattern
In Q1 of the current fiscal, 1,06,167 public shareholders held a 62.69 per cent stake or 1.88 crore shares in the firm.
13 promoters held 37.31 per cent stake or 1.12 crore shares in the last quarter.
1,00,054 public shareholders held 61.08 lakh shares of the firm, amounting to a stake of 20.33 per cent with an individual share capital of up to Rs 2 lakh.
27 public shareholders held 68.83 lakh shares of the firm, amounting to a stake of 22.91 per cent with an individual share capital of over Rs 2 lakh. Eight mutual funds owned 2.45 lakh shares or 0.82 per cent stake in the firm at the end of June quarter.
Renowned investor Ashish Kacholia held 5.5 lakh shares or 1.83 per cent stake in the firm in Q1.
Experts’ Take
Here’s a look at what analysts said on the outlook of the stock.
Ravi Singh, vice president and head of research, Share India said, “Mastek share price is witnessing selling pressure amid overall weakness in the IT sector. Also, the benchmark indices are trading in negative zone putting more pressure on the stock. The counter is testing support around Rs 1,980 levels but the weakness will continue. In this scenario, the stock of Mastek may go to Rs 1,900 in coming trading sessions.”
Pavitraa Shetty, Co-founder & Trainer, Tips2Trades said, “Despite average Q1FY23 earnings, a weaker sentiment in midcap & small cap IT stocks have also led Mastek to a consistent sell off since past few weeks. Till Mastek doesn’t close above Rs 2,060 on daily charts, investors should not buy as Rs 1,930 levels could be expected in the near term.”
About Mastek Ltd
Mastek is an India-based enterprise digital transformation specialist. The company is a provider of vertically focused enterprise technology solutions. Its segments include UK & Europe operations, North America operations, Middle East and Others. The portfolio of its offerings includes business and technology services, which consist of application development, application maintenance, business intelligence and data warehousing, testing and assurance and legacy modernisation.