My two cents:
So far Mastek is been operating in standard onsite/offshore project executing small to mid size project. There revenue was dependent on few large clients, like BT, Capital in the past. Additionally, all revenue (more than 80%) has been derived from the UK.
Historically, Mastek major revenue was coming from onsite - meaning major revenue was derived from resources placed on the client side. Small portion of their revenue was derived from Fixed Bid/Offshore resource. Offshore business is more profitable and sticky, which was lacking in Mastek.
However, Covid has changed the situation for Mastek and they are now getting good portion of new work from Offshore, which is more profitable. This has aided there margin last year .
IMO biggest changed in Mastek profitability happened through Evosys. Evosys is not only more profitable than Mastek, it acquire large number of clients (35-40 per quarter) which bring in more potential for cross sale. This is also helping Mastek to crack US market, which has been eluding them for decades. Mastek never had a good business from US (Majesco has US revenue, but it was mostly in the insurance). They have tried various things for US entry, but still struggling.
Question is how sustainable it is? John Own main KPI (if you listen to him since he joined) was to bring in stability to the revenue and profitability, which he did amazingly well. We need to see what happen going forward.
Looks like they will go for another acquisition but may be they will wait until new CEO join on-board. Based on the cash they have, they are likely to do it sooner than later. I have seen their capital allocation over many years and it was reasonably good. They bought back their stock many times when the prices was between 100-150 (6-7 years back). Their US acquisition of TAIS Tech did not work out as expected, but Evosys is looking like spectacular as of now.
If they get a good CEO (which will be difficult to determine in initial years. Every new incoming CEO will have a grand resume, otherwise he won’t be selected) and able to develop US market well, I think the stock has good potential.