Shares of MTAR Technologies gained 3.66% on Tuesday’s early trades to reach an intraday high of ₹ 1965.00 apiece on the bourses after its shares changed hands in a bulk deal. At 11:50 AM, its shares were trading at ₹ 1,942.90 apiece, up 2.50%.
MTAR Technologies manufactures various machine equipment, assemblies, sub-assemblies, and spare parts for energy, nuclear, space, aerospace, defence and other engineering industries.
According to data available on the Bombay Stock Exchange (BSE), Plutus Wealth Management LLP, an Ahmedabad-based investment firm bought 13,15,000 shares of the company in a bulk deal. The shares were bought at ₹ 1,882.02 apiece on Monday, taking the transaction value to ₹ 247.22 crore.
Meanwhile, the promoters of the company — Usha Reddy Chigarapalli, Anitha Reddy Dwaram and Kavitha Reddy Gangapatnam sold 11.20 lakh shares, amounting to a 3.6 per cent stake in the company. These shares were sold in the range of ₹ 1880.00 to ₹ 1880.15 apiece, according to the data on the BSE.
Less than a week ago, on June 01, 2023, France-based financial services company Societe Generale bought 4.16 lakh equity shares or a 1.35 per cent stake in MTAR Technologies via an open market transaction at ₹ 1800.00 per share.
In the latest quarter, MTAR Technologies’ profit climbed 57% to ₹ 31.07 crore against ₹ 19.80 crore in the corresponding quarter of the previous fiscal. Its revenue rose 99.23% to ₹ 196.40 crore in the March quarter against ₹ 98.58 crore in the same quarter last year.
MTAR Technologies is a small-cap company with a market capitalization of ₹ 5,831 crores. It has a return on equity of 18.15% and an ideal debt-to-equity ratio of 0.23. Its shares were trading at a price-to-earnings ratio of 56.38 which is significantly higher than the industry P/E of 26.70, indicating that the stock might be overvalued as compared to its peers, or investors are willing to pay a higher amount for the company’s future earnings.
Written By Simran Bafna
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