MTAR Tech Shares Price Jump 6% On Rs.226 Crore Order Win; Motilal Oswal Targets Rs.2,100

The shares of MTAR Technologies Ltd., a small-cap stock listed on the BSE, surged 6% on December 20, 2024, following the announcement of a significant milestone. The company, a key player in the Aerospace and Defense sector, secured orders worth ₹226 crore spanning the clean energy and aerospace domains.

Details of New Orders

The Hyderabad-based engineering solutions provider revealed in an exchange filing that the orders come from key domestic and international clients. Among the highlights, the company received a Rs.190.9 crore order from Bloom Energy Corporation, a long-standing client contributing nearly two-thirds of MTAR's revenue, with execution expected by October 2025. Additionally, MTAR secured its first contract worth Rs.15.31 crore from Israel Aerospace Industries (IAI) under a new 15-year agreement, focusing on mission-critical aviation assemblies, to be delivered by December 2025. The company also obtained a Rs. 7.99 crore defense order from Rafael Advanced Defence Systems Ltd., scheduled for completion by April 2026, and an Rs. 11.74 crore aerospace order from IMI Systems Ltd., set for execution by April 2025.

MTAR tech Share Performance

Following the announcement, MTAR Technologies' stock surged by 6.28% as of 10 AM on December 20, reaching Rs.1,722 However, despite this increase, the stock remains approximately 38% below its recent 52-week high of Rs.2,345. This month, the stock has traded lower by 3.27%, and year-to-date, MTAR's share price is down by 22%. On a positive note, over the last five years, the stock has delivered a 67% return to its investors.

MTAR Technologies Financial Performance and Outlook

MTAR Technologies reported a total income from operations of Rs.5,808 crore for FY24, with an EBITDA of Rs.1,127 crore. According to a report by Motilal Oswal, the company derives approximately 60% of its revenue (as of 1HFY25) from the clean energy segment, primarily from its key client, Bloom Energy (BE). With the transitory impact of BE's product changes now resolved, MTAR is poised for strong growth in this segment, due to revival of orders from BE and the onboarding of new clients.

Motilal Oswal projects MTAR Technologies to achieve a Compounded Annual Growth Rate (CAGR) of 28% in revenue, 42% in EBITDA, and 58% in adjusted Profit After Tax (PAT) over FY24 to FY27, with the company's strong growth potential and market opportunities.

Analyst Predictions for MTAR Technologies Stock

Motilal Oswal has maintained its "BUY" recommendation for MTAR Technologies, with a target price of Rs.2,100. The analysis report further says that over the years, MTAR has carved out a unique place in the industry, thanks to its advanced engineering capabilities and focus on critical sectors like clean energy, defense, and aerospace. Analysts believe this strong foundation and strategic partnerships will drive the company's growth and make it an attractive choice for investors.

About MTAR tech ltd:

MTAR Technologies Limited, established in 1970 and headquartered in Hyderabad, India, is a prominent precision engineering company specializing in the manufacture of mission-critical components and assemblies for sectors of national importance, including civilian nuclear power, space, defense, and clean energy. MTAR has established strong relationships with organizations like the Nuclear Power Corporation of India Limited (NPCIL). MTAR is major industrial partner of the ISRO and produces liquid propulsion engines. The company has been in the clean energy sector for over a decade and has been associated with Bloom Energy Inc., USA, contributing to the global clean energy supply chain.