In the pursuit of monumental achievements, no single organization can do it alone. It takes the collective efforts of many to accomplish something truly significant. A prime example of this is the success story of Chandrayaan-3, where MTAR Technologies played a pivotal role.
MTAR Technologies is a leading precision engineering company with a diverse portfolio and a significant role in key industries such as space, energy, and defense.
As the nation celebrates this achievement, let’s explore the promising future ahead for MTAR Technologies and address the question: Can MTAR Technologies’ share prices touch ₹3,000 by 2030?
Let’s get into it …
About MTAR Technologies Ltd.
Established in 1970, MTAR Technologies is a trusted manufacturer of a wide range of machine equipment, assemblies, sub-assemblies, and spare parts for industries like energy, nuclear, space, aerospace, defense, and engineering.
Notably, it excels in crafting complex components and assemblies for nuclear reactors and is a key supplier of import substitutes like Ball Screws and Water Lubricated Bearings.
MTAR Technologies serves a wide range of clients, including major multinational corporations like Bloom Energy, Elbit, and Rafael, government departments such as ISRO and the Defense Research and Development Organization, and prominent Indian companies like HAL, BHEL, and Bharat Dynamics.
MTAR Technologies has been involved in several notable projects, including:
- Supplying engines for the PSLV-C25, which successfully launched the Mars Orbiter Mission Spacecraft.
- Integral contributions to the GSLV Mark III engine for the Chandrayaan-II mission, exemplifying its vital role in India’s space exploration endeavors.
Clean energy is another key focus area, where it manufactures power units and prototypes for hydrogen boxes and electrolyzers. With a diverse portfolio, strong client base, and strategic manufacturing units, MTAR is a leader in its field. Expansion plans and a commitment to innovation further solidify its position in the market.
Recent News Around MTAR Technologies Ltd.
- MTAR Technologies, known for making vital parts for Chandrayaan-3’s rocket and cryogenic engines, saw its value soar to nearly Rs 7,500 crores as its stock surged over 10% to reach Rs 2,450, an all-time high. ( 24 Aug)
- In the April-June quarter of the fiscal year 2023-24, MTAR Technologies achieved a notable 25.4% growth in profit after tax (PAT), reaching Rs 20.3 crore, compared to Rs 16.2 crore during the same period the previous year. ( 11 Aug)
MTAR Q2 Results 2024 Summary and Key Points
MTAR Q2 FY2024 Performance Summary
- Profit After Tax (PAT): MTAR Technologies reported a consolidated PAT of Rs 20.4 crore, marking a 17% decline YoY from Rs 24.6 crore in the same quarter last year.
- Revenue: The company achieved a revenue of Rs 167 crore, up 32% from Rs 126 crore in the corresponding quarter of the previous year.
- EBITDA: Earnings before interest, tax, depreciation, and amortisation stood at Rs 36 crore, a marginal increase from Rs 34.8 crore in Q2 FY23.
- Profitability Margin: The company’s profitability margin declined significantly by 660 basis points to 21% from 27.6% a year ago.
MTAR Guidance Revision
- Revenue Guidance: Revised to Rs 670-700 crore from the earlier projection of Rs 830-860 crore.
- EBITDA Guidance: Lowered to around 26% from the previous forecast of about 28%.
- The adjustments in guidance are attributed to the deferment of shipments in the Clean Energy segment to the next fiscal year.
Outlook and Past Performance
- Despite the downward revision in guidance, the management maintains a positive long-term growth outlook, expecting accelerated order inflow from H2 FY 24.
- This is the first time the company has cut its guidance since its IPO.
- MTAR Technologies’ shares have gained over 43% in 2023, outperforming the Nifty50’s rise of over 6%.
MTAR Q1 Fy2024 Key Points (Past Quarter)
MTAR Technologies experienced a substantial 68% increase in revenue during Q1 FY24 in comparison to the corresponding quarter in the previous fiscal year.
- The company’s EBITDA showed robust growth, surging by 38% year-on-year, highlighting its strong financial performance.
- The EBITDA margins for Q1 FY24 stood at an impressive 22.6%.
- MTAR Technologies achieved significant growth in its Profit After Tax (PAT), which saw a remarkable 25% increase in comparison to the same quarter in the previous fiscal year.
- The PAT margins for Q1 FY24 were strong, standing at 13.3%.
- Inventory management in Q1 FY24 demonstrated improvements compared to Q4 FY23, with inventory levels decreasing from 246 to 239.
|When||Maximum Price||Minimum Price|
In November 2023, MTAR’s stock exhibited a maximum price of ₹2,480.81 and a minimum of ₹2,064.37 with an average share price of ₹2,272.81.
Looking ahead, as of December 2023, the stock is expected to experience a maximum price of ₹2,459.37 and a minimum of ₹2,235.79.
|When||Maximum Price||Minimum Price|
Analyzing the price patterns of MTAR Technologies throughout 2024 reveals a persistent upward momentum.
Looking at MTAR Technologies’ prices throughout 2024, it’s clear they’ve been on an upward journey. The highest price started at ₹2,509.56 in January and reached ₹2,869.89 by December, showing a steady rise. Similarly, the lowest price began at ₹2,182.23 in January and grew to ₹2,495.56 in December.
This suggests that MTAR might continue this trend, which is good news for investors and shows confidence in the company’s future.
Starting at ₹2,927.29 in January and steadily rising to ₹3,498.80 by December.
Simultaneously, the minimum price is expected to show a consistent increase, starting at ₹2,251.76 in January and reaching ₹2,691.38 by December.
These trends are worth keeping an eye on for investors interested in MTAR as it might continue its favorable performance in the future.
|Year||Maximum Price||Minimum Price|
The forecasted trajectory shows a consistent upward trend in the maximum price, starting at ₹3,673.74 in 2026 and surging impressively to ₹6,367.81 by 2030.
Simultaneously, the minimum price is expected to follow a positive trajectory, commencing at ₹2,571.62 in 2026 and gradually ascending to ₹4,457.47 in 2030.
\These projections suggest that MTAR could offer lucrative opportunities for investors seeking sustained, long-term growth in their portfolios. The company’s potential to deliver strong returns reflects a favorable outlook, aligning with its robust performance and market prospects.
MTAR Technologies Financial Condition (Last 5 Years)
|Mar 2019||Mar 2020||Mar 2021||Mar 2022||Mar 2023|
|Other Income +
|Profit before tax
|Net Profit +
|EPS in Rs||13.89||11.7||14.98||19.79||33.84|
|Dividend Payout %||22%||43%||40%||15%||0%|
Over the past five years, MTAR Technologies has demonstrated remarkable growth in its financial performance.
have consistently surged from ₹184 crore in March 2019 to an impressive ₹573 crore by March 2023, showcasing a robust upward trajectory in revenue.
Furthermore, MTAR has demonstrated consistent growth in its operating profit, rising from ₹54 crore in March 2019 to ₹154 crore in March 2023. Although the operating profit margin (OPM) experienced a slight dip to 27% in March 2023, it previously reached a peak of 34% in March 2021, underlining MTAR’s capacity to maintain robust profit margins.
Additionally, there has been notable growth in other income sources, expanding from ₹4 crore to ₹20 crore between March 2020 and March 2023.
The company’s tax percentage remained quite stable, ranging from 26% to 31%. Notably, its net profit grew impressively from ₹39 crore in March 2019 to ₹104 crore in March 2023, underscoring its financial strength.
Shareholders have also benefited as the Earnings Per Share (EPS) increased significantly, going from ₹13.89 in March 2019 to ₹33.84 in March 2023. However, the company adjusted its dividend policy, reducing the payout from 43% in March 2020 to 0% in March 2023. This suggests a potential shift in how the company allocates its earnings.
In summary, MTAR Technologies’ financial performance over these five years showcases consistent growth and sound financial management, reinforcing its position in the market.
What Is The Market Cap Of MTAR Technologies ?
As of 19th November 2023, MTAR market cap currently stands at ₹6,850 Cr.
Based on the analysis, it is conceivable that MTAR’s share price target for December 2025 could be approximately ₹3,498.80.
Can MTAR Technologies Touch 3000 INR BY 2030?
MTAR Technologies has the potential to reach or even exceed the ₹3,000 INR mark by 2030
Should One Invest In MTAR Technologies
Investing in MTAR Technologies’ shares holds potential advantages, particularly in light of its crucial role in programs like Chandrayaan 3. The company’s involvement in space exploration highlights its importance in India’s burgeoning space sector, which could lead to significant growth opportunities as space technology advances.
Looking at the marketcap, MTAR Technologies is currently valued at ₹6,850 Crores. Its stock is priced at ₹2,286, having ranged between ₹1,472 and ₹2,900 over the past year. The stock’s price-to-earnings ratio is 66.30, showing how it’s valued relative to its earnings.
Furthermore, the company’s financial strength is evident in various indicators: it has a book value of ₹202, a dividend yield of 0.13%, a return on capital employed (ROCE) of 22.2%, a return on equity (ROE) of 17.9%, and a face value of ₹10.0.
Moreover, MTAR boasts a diverse client base, reducing reliance on any single customer and providing a level of stability. This diversity helps mitigate risks associated with revenue concentration.
The clean energy sector’s focus aligns with global trends toward sustainability, offering potential for substantial opportunities.
Nonetheless, it is crucial to take into account factors such as market fluctuations, competitive dynamics, and the company’s reliance on pivotal clients, especially Bloom Energy, a major contributor to MTAR’s revenue. Additionally, the growth potential of the company may be affected by economic and industry-specific conditions.
Before investing, it’s wise to conduct thorough research, assess your investment goals and risk tolerance, and seek advice from a financial advisor. While investing in stocks carries inherent risks, MTAR Technologies’ involvement in critical sectors, its recent successes, and its robust financial indicators make it an intriguing option for those seeking long-term growth potential.
What did we learn?
- 1 About MTAR Technologies Ltd.
- 2 Recent News Around MTAR Technologies Ltd.
- 3 MTAR Q2 Results 2024 Summary and Key Points
- 4 MTAR Q1 Fy2024 Key Points (Past Quarter)
- 5 How to purchase MTAR Technologies shares?
- 6 MTAR Technologies Share Price Target 2023 To 2030
- 7 MTAR Technologies Financial Condition (Last 5 Years)
- 8 FAQs
- 9 Should One Invest In MTAR Technologies