In early trade on Thursday, Shares of a leading manufacturer of engineering equipment jumped 5.5 percent to Rs 2,425 after the company received a Defence Industrial Licence.
At 12:15 p.m. on the National Stock Exchange, MTAR Technologies Ltd shares were trading at Rs 2,403.90 per share, up Rs 110.15 or 4.80 percent from the previous close price. The company has a market valuation of Rs 7,390 crore.
According to the company’s exchange filing, MTAR Technologies Limited has received a Defence Industrial Licence (DIL: 14(2023)) to manufacture different mechanical and electronic subsystems for the defence industry. The licence will allow the firm to collaborate with foreign MNCs and serve both domestic and international markets.
The MTAR Technologies profitability metrics have increased, with return on equity increasing from 11.71 percent to 16.76 percent and return on capital employed increasing from 15.80 percent to 21.51 percent.
In addition, the Company’s margins are in acceptable condition, with a net profit margin of 18.15 percent and an operating margin of 27.10 percent.
The company’s revenue has increased by 67 percent year on year, from Rs 91 crore in Q1FY23 to Rs 152 crore in Q1FY24. During the same period, Net profit has increased by 18 percent from Rs 16 crore to Rs 19 crore.
MTAR Technologies stock gained 41 percent in six months and 48 percent in a year.
As per the latest shareholding pattern, the promoters hold a 39.14 percent stake in the company, while foreign institutional investors own a 4.52 percent stake and domestic institutional investors own 28.03 percent.
MTAR Technologies manufactures machine tools, assemblies, subassemblies, and spare parts for the energy, nuclear, space, aerospace, military, and other technical industries.
Written by Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
