Company Snapshots

• MTAR technologies Ltd develops and manufactures components and equipment for the defense, aerospace, nuclear and clean energy sectors.
• MTAR has manufacturing footprints in Hyderabad with seven units spread across a 4 km radius
• The company also supplies specialised products such as Ball Screws, Water Lubricated Bearings, Roller Screws, Electro-Mechanical Actuation Systems, ASP assemblies etc
• MOU with ISRo for development of Small Satellite Launch Vehicle project

Revenue Breakup

1) Product wise Breakup

Following is the revenue breakup of the MTAR technologies ltd

1. Clean Energy – Fuel Cells, Hydel & Others: (62% revenue in 2024)- Manufactures power units, specifically hot boxes and supplied prototypes hydrogen boxes and electrolysers.
2. Clean Energy – Civil Nuclear Power (9% of revenue in 2024)- Manufactures complex components and assemblies such as Fuel Machining Head, Drive Mechanisms, Bridge & Column, etc. for nuclear reactors
3. Space (5 % of revenue in 2024)- complex components and assemblies such as Liquid Propulsion Rocket Engines, Cryogenic Engines
4. Defense (4 % of revenue in 2024)- Compnay have supplied 5 ton and 10 ton actuators to LCA Tejas program
5. Product & Others (20% of revenue)- Co Manufactures High End Fabrication, High Precision Sheet Metal & even have got Roller Screws, Electro-Mechanical Actuator as products in their portfolio

2) Location wise Breakup

74% exports

1.  India : 26%
2. Others: 74%

Fundamental Analysis

Key Ratios

Financial Trend

Revenue: 5  Year Comparison

• 2020: 214 Crore
• 2024: 580 Crore
• 5 Year Percentage change: 170.75 %
  

Net Profit: 5 Year Comparison

• 2020:31 Crore
• 2024: 56 Crore
• 5 Year Percentage change: 80.65 %
  

Shareholding Pattern

Change in Shareholding Pattern

Promoters:

• Mar-23: 46.63%
• Mar-24: 37.26%
• 1 Year Change: -9.37%
• Analysis: Promoters’ shareholding has decreased by 9.37%, indicating a significant reduction in their stake, possibly due to selling shares or dilution of ownership.

Foreign Institutional Investors (FIIs):

• Mar-23: 2.51%
• Mar-24: 10.57%
• 1 Year Change: +8.06%
• Analysis: FIIs have substantially increased their stake by 8.06%, reflecting a strong increase in foreign investment and confidence in the company’s potential.

Domestic Institutional Investors (DIIs):

• Mar-23: 27.57%
• Mar-24: 18.07%
• 1 Year Change: -9.50%
• Analysis: DIIs’ shareholding has decreased significantly by 9.50%, indicating a major reduction in domestic institutional investment, which might be due to reallocations or strategic shifts.

Public:

• Mar-23: 23.28%
• Mar-24: 34.10%
• 1 Year Change: +10.82%
• Analysis: Public shareholding has increased by 10.82%, suggesting a notable rise in retail investor participation, possibly driven by market sentiment or improved accessibility.

Stock Price Returns

1 Year Stock Returns

• MTAR technologies Ltd  has given negative 1 Year returns of 6.54 %
• 1 Lakh invested in July 2023 would have become 0.93 Lakhs  in July 2024

3 Year Stock Returns

• MTAR technologies Ltd has given 3 Year returns of 82.43 %
• 1 Lakh invested in July 2021 would have become 1.82 Lakhs in July 2024

Company Valuation

• Current PE- 108
  
• Median PE- 72
  
• Company is Overvalued: As the Median PE is less than the Current PE, so we can say that company is company is  overvalued.
• Current Modi Government is focusing on the defence sector, this is the reason all the defence sector companies are trading at a higher valuation.

Should you invest in this defense stock ?

• MTAR technologies Ltd is fundamentally strong company with a minimal debt
• Company is consistently increasing its revenue & net profit & currently sitting at its all time high revenue
• As the current government is focusing on the defense export & MTAR technologies Ltd being the small cap company  (6000Cr)  has the great potential to be a multibagger in the near future.
• Company is majorly focused in the clean energy  sector with revenue contribution of 71 % in 2024, in the near future clean energy has great demand & this company has the potential to become the market leader in upcoming 10  years

Check Out this- Data Patterns Ltd zooms 343% in 3 years, should you invest ?

Disclaimer

• Money Minded School is not a SEBI registered investment advisor, Please do your own research before investing
• This article is a complete guide about MTAR Technologies Ltd
• These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
• Also, We have talked in detail about the share’s future prospects and growth potential.
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