Mastek surges 15% on heavy volumes; Rebounds 21% from Monday's low

A combined 3.46 million equity shares representing 11 per cent of total equity of Mastek have changed hands on the NSE and BSE till 02:49 PM

Shares of Mastek soared by 15 per cent to ₹2,277.55 on the BSE in Wednesday’s intraday trade amid heavy volumes in an otherwise weak market. The stock price of the software services company has bounced back 21 per cent from its 52-week low of ₹1,882.90 it touched on Monday, April 7, 2025. In comparison, as of 02:49 PM, the BSE Sensex and BSE Information Technology (IT) index are down 0.52 per cent and 2.2 per cent, respectively.

 

The average trading volumes on the counter jumped multiple-fold today. A combined 3.46 million equity shares representing 11 per cent of the total equity of Mastek have changed hands on the NSE and BSE.

 

Mastek is a global provider of enterprise AI, digital, and cloud services, enabling clients to achieve measurable and sustainable returns on their technology investments. Mastek partners with industry leaders such as Oracle, Salesforce, Microsoft, AWS, Snowflake, and Databricks, serving key sectors such as the public sector, healthcare, retail, manufacturing, higher education, and financial services. The stock price of Mastek has corrected 33 per cent from its 52-week high level of ₹3,375, touched on December 4, 2024.

 

The board of directors of Mastek is scheduled to meet on April 18, 2025, to consider and approve the audited financial results of the company for the financial year ended March 31, 2025. 

 

During the financial year 2013-14, Mastek initiated a share buyback and, under the said scheme, bought back 2.48 million equity shares at a total value of Rs 54.17 crore.

 

Meanwhile, Mastek has a long-standing relationship with the U.K. government as it was working as a subcontractor to large IT companies for the execution of UK government projects earlier. This long-term relationship and excellent execution capabilities make Mastek a prime beneficiary of the UK government’s digital spending.

 

According to Mirae Asset Sharekhan, Mastek expects a 40-50 per cent growth in UK healthcare revenue next year, driven by the new government’s modernization plan and increased AI and data investments, despite short-term decision-making delays stemming from the NHS England merger with the Department of Health and Social Care (DHSC). NHS England is an important customer for Mastek and has aided in doubling UK healthcare business revenue year-on-year (YoY) in the financial year 2024-25 (FY25). 

 

The brokerage firm said Mastek is streamlining its North American operations, increasing Data & AI investments, and targeting both tier-2 ($1-10 billion revenue) and Fortune 500 customers, along with a focus on healthcare and manufacturing verticals. Margins are expected to face short-term pressure from new UK healthcare contracts and North American reorganization costs, but AI efficiencies and refined go-to-market strategy aim to restore profitability in 12-36 months.

 

The management is confident in continued growth due to the new UK government’s modernization commitment, including increased funding and a 10-year plan, despite concerns about the merger of NHS England with the Department of Health and Social Care. 

 

“We believe North America’s reset is a proactive step to unlock long-term potential while near-term margin pressures are a transient cost of growth. The management’s clear roadmap to address the impending merger and ensure margin recovery through AI efficiencies and supply chain adjustments, along with strong order book positions, has set Mastek for sustained growth and profitability across key markets,” the brokerage firm said.

 

However, rupee appreciation and/or adverse cross-currency movements, the contagion effect of the banking crisis, and macro headwinds and recession in the US can moderate the pace of technology spending are key risks, the brokerage firm said.