Promoters of MTAR Technologies Ltd sold a total of 75,42,468 shares in the open market; stock gained over 2 per cent today!
MTAR Technologies stands at a critical juncture. Having carved a niche as a leader in precision engineering for strategic sectors, the company now faces questions about its future direction following a significant divestment by its promoters and mixed financial performance.
MTAR Technologies has risen to become a powerhouse in precision engineering, crafting vital components for the energy, nuclear, space, aerospace, and defence sectors. They boast over 35 years of experience in India’s nuclear program, collaborate with ISRO on critical space missions, and forge parts for aircraft, satellites, and defence equipment both domestically and internationally.
Their state-of-the-art facilities ensure unmatched quality and tight tolerances, making them a trusted partner for giants like NPCIL, ISRO, DRDO, Rafael, and Elbit. In just over five decades, MTAR has become a cornerstone of Indian engineering, advancing the nation’s strategic sectors while confidently taking on the global market.
In a noteworthy move between December 15th and 28th, 2023, the promoters of MTAR Technologies Ltd offloaded a significant chunk of their holdings, selling a total of 75,42,468 shares in the open market. This substantial divestment, valued at approximately Rs 2,000 crore, has naturally sparked curiosity and speculation about the driving forces behind such a decision.
Financials of the company
The company has a market cap of Rs 6,675 crore and has delivered good profit growth of 80% CAGR over the last 5 years. The stock is trading at 10.1 times its book value of Rs 215 each. As of September 30, 2023, the company’s order book stands at Rs 997.6 crore.
MTAR delivered mixed results in Q2FY24. While net sales surged 32.5% to Rs 167 crore, net profit dipped 16% to Rs 25 crore compared to Q2FY23. This follows a stellar FY23 with net sales and profit skyrocketing 78.2% and 70% respectively to Rs 574 crore and Rs 104 crore compared to FY22. The profit decline in Q2 raises questions about future momentum, despite healthy top-line growth.
Today, shares of MTAR Technologies gained over 2% to an intraday high of Rs 2,180.95 per share. The stock has a 52-week high of Rs 2,920 and its 52-week low is Rs 1,472.45. The stock is up by 15% in 6 months and 35% in 1 year.
MTAR Technologies stands at a critical juncture. Having carved a niche as a leader in precision engineering for strategic sectors, the company now faces questions about its future direction following a significant divestment by its promoters and mixed financial performance.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.