Shares of this small-cap IT stock surged 11 percent in Thursday’s trading session after the company emerged as a supplier in the Digital and IT Professional Services (DIPS) Framework of the UK’s Defence Ministry for various services. In the last six months, the company’s stock gained more than 20 percent for its holders.
With a market capitalization of Rs 8,832.27 crores, the stocks of Mastek Limited opened their trading hour on Thursday at Rs 2,577.05 and currently trade at Rs 2,853.05, zooming approximately 11 percent compared to the previous close of Rs 2,583.55 apiece.
Such sharp share price movements were observed today after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), announced key business updates.
It mentioned that the company has been awarded a place in ‘Lot 1’, viz, for Enterprise & Tech Architecture, Data, Innovation, Tech Assurance, etc under the Digital and IT Professional Services (DIPS) framework of the UK’s Ministry Of Defence (MoD).
Moreover, the IT company will also be a Subcontractor for Qinetiq Limited, a Defence and Security company integrated globally, on ‘Lot 2’, viz, for UX, System Design, App Support, etc and on ‘Lot 3’, i.e., for Cyber Security, Sec Ops, Crypto, and Integrated Systems.
The DIPS framework will support and enable the MoD with digital strategies on modern technology, cyber defence, and digital delivery that are relevant, on time, and cost-competitive to meet the demands of Defence’s transformation objectives.
“Being a supplier to the MOD through the DIPS framework is a fabulous opportunity to grow our already proven trusted relationship. We’ve brought together a strong supply chain ecosystem, which gives us the best structure to deliver against the MOD’s future requirements.”, commented Mr. Dean Richardson, Head of Digital Enablement, Mastek Limited.
During the recent financial quarters, the company’s prime indicators of business, viz, its operating revenues as well as after-tax profits, showed a stellar performance with the former increasing from Rs 766 crores during Q2FY24 to Rs 784 crores during Q3FY24, and the latter, during the same time horizon, shifted up from Rs 65 crores to Rs 78 crores.
According to the latest presentations, the company’s 12-month order backlog during Q3FY24 was reported at Rs 2,067.6 crores compared to Rs 1,705.8 crores in Q3FY23, depicting a YoY growth of 21.2 percent.
Founded in 1982, Mastek Limited is an India-based company engaged in providing vertically-focused Enterprise Technology Solutions. The company’s portfolio consists of offering IT consulting, maintenance, application, app development, testing, data warehousing, etc.
Geographically the IT company exports its services to the United Kingdom (UK), the Middle East, North America, and other regions with the UK being the maximum revenue contributor.
Written by Amit Madnani
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