Mastek drops on profit booking

Mastek lost 3.5% to Rs 194.50 at 9:27 IST on BSE, with the stock sliding on profit booking after recent steep rally triggered by the company's announcement of buyback of equity shares.

Meanwhile, the S&P BSE Sensex was down 48.87 points or 0.24% at 20,664.50.

On BSE, so far 38,000 shares were traded in the counter as against average daily volume of 2.77 lakh shares in the past two weeks.

The stock hit a high of Rs 205 and a low of Rs 194.05 so far during the day.

Shares of Mastek had rallied 28.45% in five trading sessions to settle at Rs 201.55 on Thursday, 9 January 2014, from a recent low of Rs 156.90 on 2 January 2014. The recent rally in the stock was triggered by the announcement of share buyback proposal.

Mastek had on 3 January 2014 said that its board will consider share buyback proposal on Wednesday, 8 January 2014. Subsequently, the company after market hours on Wednesday, 8 January 2014 said its board approved buyback of maximum of 32 lakh equity shares and minimum of 9.50 lakh equity shares from the open market at a price not exceeding Rs 250 per equity share for an aggregate amount not exceeding Rs 54.50 crore. The buyback offer size represents 14.92% of the aggregate of the company's paid up equity capital and free reserves as on 31 March 2013, the company said.

Mastek's consolidated net profit surged 112.27% to Rs 15.05 crore on 7.85% growth in net sales to Rs 233.71 crore in Q2 September 2013 over Q1 June 2013.

Mastek is a leading IT player with global operations providing enterprise solutions to insurance, government, and financial services organizations worldwide.

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