Categories: Stock Market News

MTAR Technologies Ltd; 74% exports; Should you invest in this defence stock ?

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

Market Cap ₹ 6,074 Cr.
Current Price ₹ 1,975
High/Low ₹ 2,920 / 1,600
Stock PE 108
Industry PE 98
ROCE 11.7 %
ROE 8.67 %
PEG Ratio 13.3
Debt To Equity 0.28

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.
  • Hopefully, this information will help you in your further investment.
  • If you have any further queries, please comment below. We will be happy to answer all your questions.
  • If you like this information, share the article with as many people as possible

 

 

 

 

 

 

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