Mastek’s share price skyrocketed over 14% on Thursday to hit an intraday high of ₹1,825 as the company posted its Q4 results.
What Happened: The IT service company’s posted its Q4 earnings on Wednesday. The company’s revenue jumped a healthy 21.95% year-over-year and 7.67% sequentially to ₹709.18 crore. The company’s profits on the other hand slumped around 9.17% YoY to ₹72.57 crore, however, the number is 13.07% jump from the ₹64.18 crore profit it booked in the December quarter.
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The small-cap company’s numbers largely beat market estimates giving hope to IT investors. IT stocks have been having a tough ride at the bourses, as sector giants TCS and Infosys‘ Q4 disappointed investors.
Domestic brokerage firm HDFC Securities maintained its ‘add’ rating on the stock raising the price target to ₹1,930 from ₹1,880. The firm noted that the company’s actual revenue and EBIT margin beat its estimates. HDFC analysts attributed the strong numbers to the company’s strong revival in the UK business. The brokerage firm expects growth to be driven by the company’s business in the UK geography (60% of revenue).
The company also declared a final dividend of ₹12/share for FY23 (April 2022- March 2023).
Price Action: Mastek share price was up 13.97% to trade at ₹1,809 in the late hours of trading on Thursday.
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