Mastek has surged 14% to Rs 105 on back of over fifteen-fold jump in trading volumes in noon deals on the National Stock Exchange. As many as a combined 386,658 shares have already changed hands on the counter in noon trades, against an average sub 25,000 shares that were traded daily in past two weeks on both the exchanges.
Mastek had reported first quarterly profit of Rs 7.1 crore after six quarters for the quarter ended March 2012 and management commentary suggests likely continuation of this trend.
The operational performance was healthy across major geographies and verticals with the company generating around Rs 32 crore from cash flow from operations.
Analyst at ICICI Direct Research upgraded the stock to BUY with a target price of Rs 120, on positive outlook by the management may minimise the risk of book value erosion.