Rs 1,078.8 crore order book: This multibagger company receives the Defence Industrial License for production of mechanical and Electronic Subsystems!

Siddharth Mane/ 30-Aug, 2023

On Wednesday, shares of the company surged by more than 4 per cent and made an intraday high of Rs 2,321.65. 

MTAR Technologies operates from seven strategically located manufacturing facilities, including an export-oriented unit, all situated in Hyderabad, Telangana. The company serves various sectors such as Clean Energy (including Civil Nuclear Power and Fuel Cells), Hydel & Others, Space, and Defence. MTAR holds extensive connections spanning more than forty years with prominent Indian entities and global original equipment manufacturers (OEMs). Furthermore, as of June 30, 2023, the company’s order book stands at Rs 1,078.8 crore and it aims for a Rs 70 crore revenue in FY24 from the defence sector. 

MTAR Technologies Limited has obtained the Defence Industrial License to manufacture mechanical and electronic subsystems for the Defence sector. This license simplifies collaboration with foreign multinational corporations (MNCs) on diverse defence projects, fostering smoother business operations. With this license, MTAR can partner with foreign MNCs and engage in projects for both domestic and export markets under acquisition categories such as ‘Buy (Indian)’, ‘Buy & Make (Indian)’, and ‘Make’. As a result, the company anticipates an enhanced contribution from the Defence sector to its overall revenues.

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The company has delivered returns of 39 per cent over the past year and stellar returns of 136 per cent over the past 3 years. Additionally, the company has a ROCE of 22.2 per cent and a ROE of 17.9 per cent. Furthermore, the company has been able to grow its sales by 39 per cent (CAGR) for the past 3 years and net profit has grown by 48 per cent (CAGR).

On Wednesday, shares of the company surged by more than 4 per cent and made an intraday high of Rs 2,321.65.

Investors should keep a close eye on this buzzing stock.

Disclaimer: The article is for informational purposes only and not investment advice.

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