'Buy' Mastek Shares Maintains HDFC Securities On Strong Growth Momentum In UK — Check New Target Price

The positive outlook for the UK and Europe is driven by the strong growth momentum in both the UK government and the UK private sector (BFSI). The UK geography is segmented into Secured Government Services, Healthcare, Commercial Sector, and the Oracle service line for local government and higher education..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.Mastek Ltd. is positioning itself for its next phase of growth with a clear focus on its regional strength, particularly in the UK government (segmented government services and NHS), while simultaneously rebuilding its US and Asia Pacific, Middle East and Africa businesses. The company maintains a highly optimistic outlook for the UK-Europe region (~64% of revenue), targeting mid-teen growth, driven by strong momentum in digital healthcare initiatives, supported by the UK government’s ~£10 billion commitment (~£2 billion digital spends). Healthcare has emerged as Mastek’s fastest-growing segment, further strengthened by its strong track record with the UK government contracts. Additionally, Mastek is aggressively pursuing new opportunities in Secured Government Services and expanding presence in departments such as the Home Office, HMRC, and Ministry of Defence. .In the U.S., the company is undergoing a significant restructuring with a new goto-market leader hired recently. The US recovery will be supported by AI and data engineering investments. Margin recovery remains a key focus, with Mastek aiming to scale Ebitda margin back to 17% over the next two years, aided by pyramid optimization, revenue per employee improvements, and restructuring benefits. We maintain our current estimates and expect the company to deliver a 12% revenue and 14% EPS CAGR over FY25-28E. We maintain Buy with a target price of Rs 3,240, based on 20x Sep 27E EPS. The stock is trading at a P/E of 19x and 16x FY26/27E EPS.Click on the attachment to read the full report:.Phoenix Mills Gets 'Buy' Upgrade From Motilal Oswal, Sees 35% Potential Upside — Check Target Price.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Buy' Mastek Shares Maintains HDFC Securities On Strong Growth Momentum In UK — Check New Target Price

HDFC Securities maintains its current estimates and expect Mastek to deliver a 12% revenue and 14% EPS CAGR over FY25-28E.

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