Stock to buy: Geojit says buy Mastek for 22% upside in 3-6 months

Shares of Mumbai-based Mastek Ltd could deliver 22 per cent upside over the next 3-6 months, Geojit Financial Services said on Tuesday, citing technical and fundamental reasons. Geojit said since hitting a low of Rs 1,887 on April 7, 2025, the stock has seen renewed buying interest at lower levels, leading to a notable improvement in price action.

On the daily chart, the stock has been forming a higher high and higher low structure, indicating a constructive trend supported by improving momentum. The Relative Strength Index (RSI) is also currently hovering around 56, indicating a steady recovery in momentum and signalling improving strength in the underlying trend.

Also, the MACD has also shown a positive crossover. That said, the stock continues to trend below its central line, warranting a cautious approach.

"The stock is presently encountering strong resistance near its 200-DMA. A decisive breakout above this level could open the path for an upward move towards the 2,800 mark, with potential to test the 3,400 level in the forthcoming sessions," Geojit said.

Geojit suggested a buy range of Rs 2,630–2,715, a stop loss of Rs 2,380 and a target price of  Rs 3,260.

The provider of digital engineering and cloud transformation services, operating in over 40 countries. It partners with Oracle, Salesforce, Microsoft, AWS, and Snowflake to deliver consulting, data analytics, and enterprise solutions. The UK and Europe contribute 64 per cent of revenue, followed by the US and Middle East. Sector-wise, Government and Education lead with 39 per cent, Healthcare contributes 25 per cent, while Retail, Manufacturing, and Financial Services each account for around 12 per cent.

Mastek reported Q1FY26 revenue of Rs 914.7 crore, marking a 12.5 per cent YoY growth in rupee terms led by strong performance in the UK & Europe, driven by momentum in healthcare and secured government services.

Net profit (PAT) rose to Rs 92.10 crore, up 28.7 per cent YoY, reflecting strong operational execution, Geojit Financial Services said.

"The 12-month order backlog grew to Rs 2,347.9 crore, up 8.3 per cent YoY and 2.5 per cent QoQ supported by sustained demand across digital engineering, data analytics, and Oracle-led engagements in healthcare and commercial sectors," Geojit said.

"With a robust order pipeline and deep client relationships, Mastek is well-positioned for scalable growth. The stock currently trades at 21x one-year forward P/," the brokerage added.