Mastek shares rally 13% after Q1 net profit surges 29% YoY

Time of India

3 days ago

Mastek's shares surged by 13.08% following a robust Q1FY26 financial report, showcasing a 28.7% increase in net profit. Trading above all key Simple Moving Averages, the company's strengths, including attractive valuation and consistent profit growth, outweigh its weaknesses. With low debt and zero promoter pledge, Mastek's financial stability boosts investor confidence.
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Shares of Mastek rose by 13.08% on Monday to hit an intraday high of Rs 2,755 apiece on the BSE following the company's financial results for the first quarter of FY26.Last week, Mastek reported a 28.7% year-on-year increase in net profit for Q1FY26, rising to Rs 92 crore from Rs 71.5 crore in the same quarter the previous year.The operating Ebitda margin was 15%, down slightly by 31 basis points, reflecting continued investments in talent and capabilities. Despite this, operating Ebitda grew 10.8% year-on-year.Mastek's strong financials and consistent execution have boosted market confidence, leading to the sharp uptick in its stock price.Mastek is currently trading above all 8 Simple Moving Averages (SMAs), ranging from the short-term 5-day SMA to the long-term 200-day SMA, indicating a strong upward trend across multiple timeframes.According to Trendlyne's SWOT analysis, the stock's strengths significantly outweigh its weaknesses. Key positive factors include a trailing twelve-month (TTM) price-to-earnings (PE) ratio that is lower than its 3-year, 5-year, and 10-year averages, signalling potentially attractive valuation. The company has also shown consistent growth in net profit with improving profit margins quarter-on-quarter.Additionally, Mastek maintains low debt levels, has recorded rising annual net profits over the past two years, and has seen its book value per share increase during the same period. Importantly, the company has zero promoter pledge, which is viewed positively by investors as it indicates confidence and financial stability.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)