Mumbai, Oct. 3: Mastek Ltd, the Mumbai-based mid-cap IT company, is planning a share buyback.

The board of the company will meet on October 11, the day that Infosys kicks off the earnings season for the second quarter, to decide on the proposal.

In an interview to the media, R. Desikan, the chief financial officer, said the company could look at buying back up to 10 per cent of net worth.

According to market sources, the company is in the process of launching its insurance sector product SOA Elixir sometime in the middle of the next calendar year.

The product, based on the enterprise platform, is meant for the insurance sector and is based on service oriented architecture. As a result, going forward, the performance outlook for the company is very strong. The stock has been badly undervalued.

“The company is zero debt and has a very comfortable cash position. Mastek throws up close to Rs 30 crore in operational profits each year,” said an industry analyst.