#Mastek results 🧵
Derating started from april. Stock almost halved. Part is due to midcap correction. Part due to softness of biz.
Price can lead fundamentals. One of my biggest learning is to panic early or not panic.
Will also discuss my strategy
Derating started from april. Stock almost halved. Part is due to midcap correction. Part due to softness of biz.
Price can lead fundamentals. One of my biggest learning is to panic early or not panic.
Will also discuss my strategy
Negatives first
Despite a weak result, the price has not reacted. This is what they mean by "it was in the price". Price already corrected in anticipation of poor Q1 results.
Despite a weak result, the price has not reacted. This is what they mean by "it was in the price". Price already corrected in anticipation of poor Q1 results.
This is why it makes sense to incorporate technicals IMO. Big institutions **definitely** have an info edge. Reflects in price.
I am in process of learning from @icanseeyourpix2
Ajay bro, what could have been a good technical exit point bw april & now based on charts?
I am in process of learning from @icanseeyourpix2
Ajay bro, what could have been a good technical exit point bw april & now based on charts?
You can clearly see here that #2 is pointing to weakness in biz environment. British govt is in wait & watch mode. So should we be. Cannot be sanguine.
Positives
#1 If at all it can be called a silver linking, order book growth is still fairly strong. If you can grow order book 4% QoQ in a weak envt when your largest customer is in wait & watch mode, imagine what you can do otherwise.
#1 If at all it can be called a silver linking, order book growth is still fairly strong. If you can grow order book 4% QoQ in a weak envt when your largest customer is in wait & watch mode, imagine what you can do otherwise.
#2 The other **BIG** silver lining is the MST aquisition. THis directly adds 10% to topline & ~10% to bottomline. Saweeet. Nothing is a 10% topline boost in a downturn eh?
Another thing which street seems to have missed completely is attrition. Mastek attrition is now down QoQ.
Jab 28% gaya, toh 1000 tweets. When its down, not a single one. 🥲
Jab 28% gaya, toh 1000 tweets. When its down, not a single one. 🥲
What am I Doing?
Ill be honest. This is a tricky one. Biz envt is weak, but we see mixed signals. Strong aquisitions, 4% QoQ growth for order book, talks of shallow recession. Concall becomes more important than ever right now.
Ill be honest. This is a tricky one. Biz envt is weak, but we see mixed signals. Strong aquisitions, 4% QoQ growth for order book, talks of shallow recession. Concall becomes more important than ever right now.
Mastek does become a prime sell candidate for me, specially if i can find better opportunities (similar risk to portfolio, higher returns, stronger biz momentum).
Right now ~2% above buying price. Lets see, very interesting learning either way
1. there is a good thesis to buy: biz pain bottoming out, attrition falling, order book rising, 10% revenue addition, better roce (cash deployed)
2. Selling temporary biz weakness for stronger biz
1. there is a good thesis to buy: biz pain bottoming out, attrition falling, order book rising, 10% revenue addition, better roce (cash deployed)
2. Selling temporary biz weakness for stronger biz
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