Multibagger Alert: This midcap IT stock has risen close to 250% in the past year.

The company aims to double its revenue over the next three years.

Mumbai based IT company, Mastek Limited has given investors stellar returns of 249.33% over the last year. The share price stood at Rs 886.85 on October 12, 2020, and since then, the stock has more than tripled investor wealth on the back of strong financial performance and robust growth prospects.

In Q1FY22, Mastek saw its top line grow by 33.78% YoY to Rs 516.47 crore from Rs 386.06 crore in Q1FY21. The company added 40 new clients in Q1FY22 and its total client count as of June 2021 was 651 (LTM) compared to 639 (LTM) in Q4FY21. Mastek reported strong operational performance with PBIDT and PAT growing 65.56% and 72.2% YoY respectively.

Mastek has a strong track record in the Government, health and retail verticals, and certain critical departments such as the Home Office and Health in the UK. These departments have seen higher IT spends to support the changes in existing systems and to create new systems post-Brexit and Mastek is primed well to take advantage of these opportunities. The company has previously won several multimillion-pound contracts with the Home Office and various NHS entities.

The 12-month order backlog of the company stood at Rs 1,177.7 crore (USD 158.4 million) as of June 2021 compared to Rs 764.5 crore (USD 101.3 million) in Q1FY21, reflecting a growth of 54.0% in rupee terms and 45.5% in constant currency terms on YoY basis.

Looking ahead, overall order bookings are likely to remain strong given higher digital adoption. The company aims to double its revenue over the next three years, implying a 26% CAGR.

Mastek is an IT company that provides enterprise solutions to the Government, retail sector and financial services. It is primarily present in the UK and European market with most of its revenues coming from this geography. Its service offering includes Application Development, Oracle Suite and Cloud Migration, Digital Commerce, Application Support & Maintenance, BI & Analytics, Assurance & Testing and Agile Consulting.

At 3 pm on Wednesday, the stock is trading at Rs 3090.25, down marginally by 0.25% or Rs 7.75 per share on BSE. The 52-week high of the scrip is recorded at Rs 3,234.90 and the 52-week low at Rs 770.10 on the BSE.