Small-cap stocks on the Radar: Mastek

March 18 2021


Mastek stock is forming a 10-week, 27% deep Consolidation Base. This is a bullish sign, but it is still very deep in its base. The current price is still 15% away from its ideal buy price of INR 1464. A prudent approach would be to add the stock to your watchlist and perform a detailed analysis on it. This means you can be ready to pounce as the stock breaks out to the ideal entry point.

The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 4.1% away from the 10-week moving average.

Mastek has been a roaring outperformer as compared to the broader market. It has a top-notch Relative Strength Rating of 92. In the last twelve months, the stock has soared over 276.6% as compared to 65.6% for the Nifty500.

The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long term trend of the line is also trending upward. If Mastek can maintain this outperformance, it could make sense as a CANSLIM trade.

Another key part of the jigsaw is institutional sponsorship. Mastek has an Accumulation/Distribution Rating of 'A-'. This represents heavy institutional buying over the past 13 weeks. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.

On the earnings front, Mastek Li has an excellent EPS Rank of 99, which indicates consistency in earnings. The earnings and sales for the stock have grown by 33% and 22%, respectively over the past three years. Its 3-years earnings stability is 9, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 61% and 23%, respectively. The 5-years earnings stability is 22. The return on equity for the last reported year is 13%.

The stock belongs to the industry group of Computer-Tech Services. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 78. The current price of Mastek is -15% off from its 52-week high price and 650% above its 52-week low price.

The stock appears on our idea lists : Trend Template - 5 Months.

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