MASTEK Ltd safe bet Share

Mastek Ltd. has posted good results for first quarter ending September 08 with topline at Rs.261.65 crores against Rs.211.50 crores of the corresponding quarter of previous year, while PAT is at Rs.41.18 crores (against Rs.25.12 crores) translating into an EPS of Rs.15.27 against Rs.8.84 crores for the quarter.

On annualized basis, the same results should yield an EPS of over Rs.60, while stock is now ruling at Rs.230, resulting in a PE of less htan 4. Even book value per share, post this results, are at Rs.120 while the company had paid 200% dividend for FY 08.

Share price on 10-10-08 fell to its 52 week low at Rs.192 before the company announced its results. It may be noted that there is lot of apprehensions on the growth of the I.T. companies, especially after crisis being seen in BFSI sector in U.S. and Europe. But considering the growth having posted by the company, coupled with its financial position, share at Rs.225 qualifies a safe bet if someone has a view of 6 months on the stock.
thanks