Mastek mulls over overseas offering - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Mastek mulls over overseas offering

Aug 31, 1999

According to news reports, Mastek is planning to come out with an American Depository Receipt (ADR) issue, as it firms up plans to expand into US and European markets. Mastek is one of the top 15 software exporters in the country. Over the years, it is has got acclaim for its software development capabilities and now focuses mainly on client-sever projects and e-commerce areas. It has wholly-owned subsidiaries in USA, UK, Germany, Malaysia and Singapore. It is aggressively entering markets like Germany and France for higher-end client server/networking solutions. Y2K projects account for less than 2% of total revenues.

Mastek has been very optimistic about its US and European operations (90% of revenues and 100% of profits). Revenues from US operations (52% of total revenues) grew nearly 100% in each of the past two years. It expects its US and European businesses to grow by 50% year on year. It plans to utilise its ADR proceeds to make acquisitions in these markets and also offer stock options to its employees.

However, not everything is hunky-dory for the company in its South East Asian and domestic operations, and consequently it has reduced its personnel in these two regions by 50% each. While the company’s South East Asian operations have posted losses, its domestic operations have been affected by a slowdown in information technology (IT) investments. This is the main reason why the company has been forced to look at western markets to boost revenues.

Market view:
Analysts have rated the stock as a ‘’BUY’’ given Mastek’’s strengths in software development, minimal exposure to Y2K business and robust earnings growth.

Equitymaster requests your view! Post a comment on "Mastek mulls over overseas offering". Click here!


More Views on News

MASTEK Announces Quarterly Results (2QFY21); Net Profit Up 140.1% (Quarterly Result Update)

Nov 6, 2020 | Updated on Nov 6, 2020

For the quarter ended September 2020, MASTEK has posted a net profit of Rs 592 m (up 140.1% YoY). Sales on the other hand came in at Rs 4 bn (up 68.2% YoY). Read on for a complete analysis of MASTEK's quarterly results.

MASTEK Announces Quarterly Results (1QFY21); Net Profit Up 92.3% (Quarterly Result Update)

Aug 21, 2020 | Updated on Aug 21, 2020

For the quarter ended June 2020, MASTEK has posted a net profit of Rs 466 m (up 92.3% YoY). Sales on the other hand came in at Rs 4 bn (up 56.0% YoY). Read on for a complete analysis of MASTEK's quarterly results.

More Views on News

Most Popular

4 Stocks to Make Your Portfolio Immune to the Second Covid Wave (Profit Hunter)

Apr 6, 2021

Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.

If the Market Falls, I Will Do This... (Fast Profits Daily)

Apr 1, 2021

What should you do if the market falls? In this video, I'll tell you what I will do.

The Indian Real Estate Party Has Just Begun (Profit Hunter)

Apr 1, 2021

A favourable demand supply scenario makes a strong case for real estate prices.

The Dilemma of Investing in Bharti Airtel Views On News (Views On News)

Apr 1, 2021

Rahul Shah on whether Bharti Airtel will emerge as the next big thing in the Indian stock market

India: Recovery Stalled by Vaccine Games? (The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Apr 13, 2021 (Close)