Mastek Rebounds After 45% Slide — SEBI Analyst Flags Fresh Upside To ₹2,900

The stock is gaining traction after crossing its 200-day moving average, with technical indicators showing a strengthening setup.

Shares of Mastek have been rebounding after a sharp 45% correction between December 2024 and April 2025. 

On Monday, the stock rose 4.3% to ₹2,597.80 as it crossed its 200-day moving average, signaling a potential shift in momentum.

SEBI-registered analyst Prabhat Mittal noted that the stock has been forming higher tops and bottoms while holding trendline support. Until Friday, it was trading above its 20-, 50- and 100-day moving averages, and today’s close above the 200-displaced moving average (DMA) strengthens the setup, he said. 

Mittal suggested traders can buy Mastek at the current level of ₹2,608 with a strict stop-loss at ₹2,450, setting upside targets at ₹2,800 and ₹2,900.

CEO Rules Out Layoffs

Separately, CEO Umang Nahata told PTI last month that the mid-tier IT company is not planning any layoffs despite shifts in the tech sector. He said the workforce has reduced to about 4,800 from 5,500 a year earlier, largely due to voluntary attrition, and the company has not replaced many of those roles. 

“We do not have any plans of reducing workforce by 2% or 5%,” Nahata said, days after sector leader TCS announced a 2% cut in its headcount.

AI Push And Growth Outlook

Nahata said Mastek is aiming for mid- to high double-digit revenue growth, driven by its UK and North America businesses, with a focus on raising revenue per employee. He added that nearly the entire workforce has been trained in AI-related skills, with most of the company’s work now classified as “digital.” 

During the April–June quarter, Mastek signed AI-focused deals with a revenue potential of $16 million. 

The company is targeting mid-tier clients with outcome-based AI adoption services and may explore tuck-in acquisitions, though Nahata said identifying the right targets remains difficult.

Regarding the stock’s recent decline since December, Nahata stated that the challenges are perception-driven rather than performance-related, and that Mastek’s valuation multiples remain low compared to its peers.

What Is The Retail Mood?

On Stocktwits, retail sentiment for Mastek was ‘bullish’ amid ‘normal’ message volume.

Mastek’s stock has declined 14% so far in 2025.

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