Rs 1,078.8 crore order book: Heavy buying witnessed in this multibagger aerospace & defence stock; hits 52-week high!
The stock is up by 45 per cent in 3 months, 70 per cent in 1 year and gave multibagger returns of 120 per cent in 2 years.
On Friday, one of the Top Gainers on BSE, shares of MTAR Technologies Ltd zoomed 14.75 per cent to make a new 52-week high of Rs 2,817.75 per share from its previous closing of Rs 2,455.50. The shares of the company saw a spurt in volume by more than 2.62 times on BSE.
The company's stock price rose sharply today due to obtaining 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.
The company was also involved in the successful soft landing of Chandrayaan 3 on the moon. The company supplied Vikas engines, cryogenic engine subsystems including turbo pump, booster pump, gas generator and injector head and electro-pneumatic modules for Launch Vehicle Mark-III (LVM 3) that launched the Chandrayaan 3 on the moon.
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 was established in 1970, it is in the business of manufacturing various machine equipment, assemblies, sub-assemblies, and spare parts for energy, nuclear, space, aerospace, defence and other engineering industries.
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According to the financials, MTAR has a market cap of over Rs 8,300 crore. The company reported excellent numbers in its Quarterly Results and annual results. The net sales increased by 67.64 per cent to Rs 152.56 crore and net profit increased by 25.41 per cent to Rs 20.34 crore in Q1FY24 compared to Q1FY23. In FY23, the net sales increased by 78.18 per cent to Rs 573.75 crore and net profit increased by 69.89 crore compared to FY22.
The stock is up by 45 per cent in 3 months, 70 per cent in 1 year and gave multibagger returns of 120 per cent in 2 years. Investors should keep an eye on this aerospace & defence stock.
Disclaimer: The article is for informational purposes only and not investment advice.