Analysts Have Made A Financial Statement On Mastek Limited's (NSE:MASTEK) First-Quarter Report
Last week, you might have seen that Mastek Limited (NSE:MASTEK) released its quarterly result to the market. The early response was not positive, with shares down 5.0% to ₹1,679 in the past week. Results were roughly in line with estimates, with revenues of ₹9.9b and statutory earnings per share of ₹33.93. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Mastek after the latest results.
Taking into account the latest results, the consensus forecast from Mastek's five analysts is for revenues of ₹40.9b in 2027. This reflects a meaningful 8.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 5.5% to ₹142. Before this earnings report, the analysts had been forecasting revenues of ₹40.6b and earnings per share (EPS) of ₹138 in 2027. So the consensus seems to have become somewhat more optimistic on Mastek's earnings potential following these results.
Check out our latest analysis for Mastek
The consensus price target was unchanged at ₹1,948, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Mastek at ₹2,240 per share, while the most bearish prices it at ₹1,600. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Mastek'shistorical trends, as the 11% annualised revenue growth to the end of 2027 is roughly in line with the 14% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.7% per year. So it's pretty clear that Mastek is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Mastek following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Mastek going out to 2029, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with Mastek .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.