Rs 915 crore order book: This Aerospace and Defence Company Bangs Order Worth Rs 140 crore from Bloom Energy Corporation
The company expects a closing order book of Rs 1500 crores by March FY25.
MTAR Technologies Ltd’s stock zoomed 1.86 per cent on Wednesday due to the following development.
The company has bagged new work order of export orders worth USD 16.73 Million in Clean Energy Sector – Fuel Cells Vertical from Bloom Energy Corporation. As per the contract, USD 9.10 million which is approximately Rs 140 crore shall be executed in FY 2024-25 and balance orders will be dispatched by Q1 FY 2025-26.
The company is yet to announce its Quarterly Results for Q1FY25.
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MTAR develops and manufactures components and equipment for the defence, aerospace, nuclear and clean energy sectors. The company was incorporated in 1970 by the promoters, Mr PR Reddy, Mr KSN Reddy and Mr PJ Reddy, to cater to the technical and engineering needs of the Indian government in the post-embargo regime. MTAR has manufacturing footprints in Hyderabad with seven units spread across a 4 km radius and a dedicated export facility as well.
In addition, the company also supplies specialised products such as Ball Screws, Water Lubricated Bearings, Roller Screws, Electro-Mechanical Actuation Systems, ASP assemblies etc. that find applications across diverse sectors.
MTAR Technologies Ltd has a market cap of Rs 5,573 crore and is currently trading at Rs 1,811. The stock's 52-week high is Rs 2,920, and the low is Rs 1,600. Over the past five years, it has gained 78.15 per cent.
As per the Quarterly Results, in Q4 FY24, the company reported a revenue of Rs 142.94 crore, up by 20.91 per cent from the previous quarter but down by 27.19 per cent year-over-year. Net profit for the same period was Rs 5.07 crore, a decrease of 51.99 per cent from the previous quarter and a significant drop of 83.51 per cent compared to the same period last year. For the fiscal year 2024, revenue increased by 1.22 per cent to Rs 580 crore, while net profit fell by 46.15 per cent to Rs 56 crore.
Revenue Guidance FY25:
- Expecting around 30 per cent to 35 per cent increase in revenue.
- Diversifying customer base to mitigate risks.
- Long-term agreements with MNCs in the aviation sector.
- Strong focus on improving EBITDA margins through proactive cost management strategies.
- Expecting a closing order book of Rs 1500 crores by March FY '25.
Investors must keep this micro-cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.