Results Impact: ACC, Mastek shares jump up to 6% post in-line earnings; brokerage see nearly 17% upside in cement manufacturer stock

Amid in-line earnings for the March quarter, shares of ACC Limited and Mastek Limited surged up to 6 per cent each on the BSE intraday during Wednesday’s session. 

Individually, ACC shares jumped to a day’s level of Rs 2174.85 per share, after gaining almost 6 per cent intraday and Mastek’s stock touched a day’s high level of Rs 2889 per share, after gaining over 3 per cent intraday on the BSE.  

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On Tuesday, the cement manufacturer ACC reported a 29.5 per cent year-on-year (YoY) decline in its consolidated net profit to Rs 396.33 crore for the first quarter ended March 2022.  

The company, which follows the January-December financial year cycle, had posted a profit of Rs 562.59 crore in the same period a year ago, said ACC in a regulatory filing. 

However, its total revenue from operations during the January-March quarter grew by 3.13 per cent to Rs 4,426.54 crore, as against Rs 4,291.97 crore of the corresponding period a year ago. 

According to JM Financial, ACC’s efforts to narrow the cost gap with peers while focusing on growth augur well. The brokerage continues to value ACC at 11x EBITDA and maintained a Buy rating with a revised target price of Rs 2,400 per share, implying an upside of nearly 17 per cent. 

Similarly, the net profit of Mastek rose almost 32 per cent to Rs 79.90 crore in the fourth quarter of FY22 as against Rs 60.55 crore during a year-ago quarter. While sales jumped over 20 per cent to Rs 581.53 crore in Q4FY22 as against Rs 483.21 crore during the same quarter in March 2021. 

The company in its filing to exchanges said, “Revenue was US $77.2 million (Constant Currency growth at 5.3 per cent sequentially and 18.3 (YoY).” 

“Mastek’s ability to execute business process transformation services and our differentiation in Oracle Cloud has helped us win some large deals and grow accounts during the year. We are witnessing strong demand acceleration as reflected in our record 12 months order backlog of US $ 193.8 million as of March 2022,” Hiral Chandrana, Global CEO of Mastek said in the results’ release.