Daljeet Kohli & Amar Mourya first put a buy on Mastek in January 2014 when it was quoting at Rs. 180. They had foreseen “value unlocking” in the stock. That belief came true in September 2014 and the stock rocketed to Rs. 272, giving a gain of 50%+.
At that stage, Daljeet & Amar increased the target price to Rs. 550.
Today, in the wake of Mastek’s Q2FY15 results, the duo has issued an update (pdf). They say that the results are “above expectation” and that there is “strong growth” in the Insurance vertical. They also point out that the overall business momentum looks bullish in key areas and that the company is likely to sign a few large deals in the Insurance vertical.
The target price continues to be pegged at Rs. 550, which is a 100%+ upside from the CMP of Rs. 258.
ICICI-Direct has predicted a target price of Rs. 500 for Mastek in its report of 18th September 2014.
It is noteworthy that Ashish Dhawan, the single largest shareholder of Mastek, has been severely pruning his shareholding. He held 25,07,116 shares as of 30th September 2013. As of 30th September 2014, his holding has slumped to only 8,14,090 shares. Sasken Communications has met with a worse fate. As of 30th September 2014, Ashish Dhawan has sold off his entire holding of 20,50,344 shares in Sasken.