The stock market saw surge today (February 19), leading to a favorable position for many stocks. ICICI Direct, a brokerage house, has chosen Mastek, a small-cap IT company, for acquisition. This move is expected to positively impact the company's growth, considering Mastek has yielded over 90% returns in the past year.
Mastek's stock price is projected to reach Rs 3500, as recommended by ICICI Direct, with a target price of Rs 3500 over the next 12 months. The closing price of the stock on February 16, 2024, was Rs 3,091, indicating a potential return of 13-14% in the coming year.
Company Overview
Mastek, a technology giant, offers data, applications, and cloud services across India, the UK, the US, the Middle East, and Asia Pacific. With a presence in over 40 countries, the company serves more than 400 active customers.
What experts say?
According to the brokerage house, Mastek has diversified its business in the last 18 months, expanding its operations in the United States. The acquisitions of MST Solutions and BusinessAnalytica have contributed to this diversification. Additionally, the company's U.S. revenue has increased from 16.7 percent in FY21 to 24.4 percent in FY23. The brokerage anticipates that the company's expansion in the U.S. will further enhance its growth prospects, leading to overall revenue growth.