In Friday’s trading session, the shares of one of the leading Defence companies in India specialising in the design and manufacturing of high-precision products for sectors, including aerospace, nuclear, defense, and clean energy declined by upto 3 percent following promoters exiting by selling majority of their stakes i.e., upto 5 percent in the company
Price action
With a market capitalization of 5,139 Crores on Friday, the shares of MTAR Technologies Ltd declined upto 3 percent making a low of Rs 1626.60 compared to its previous closing price of Rs 1671.35.
What happened
MTAR Technologies Ltd declined upto 3 percent following three major promoters D Anitha Reddy, Kavitha Reddy Gangapatnam, and Usha Reddy Chigarapalli sold their majority stake up to 5 percent in the company.
D Anitha Reddy sold a total of 7,90,431 equity shares, representing a 2.57 percent stake in MTAR Technologies Limited, thereby completely exiting the company. Similarly, Usha Reddy Chigarapalli sold 7,05,445 equity shares consisting 2.29 percent stake, also marking her full exit from the company. Meanwhile, Kavitha Reddy Gangapatnam sold 40,000 equity shares, which is 0.13 percent of her total holding of 5,32,741 shares, representing a partial reduction of her stake in the company.
About the company
MTAR Technologies Ltd is a leading precision engineering company that specializes in the design and manufacturing of high-precision products for critical sectors, including aerospace, nuclear, defense and clean energy.
The company has developed a strong reputation for delivering advanced engineering solutions and precision components. MTAR’s key offerings include assembly and manufacturing of products like reactors, control systems and other complex parts for space programs.
MTAR has become a key player in the Indian engineering sector and has expanded its global presence, catering to both domestic and international markets, the company has Diversified Order Book of Rs. 942.25 Crs as on 30th Sep 20.
Breakdown of MTAR’s Orderbook
As of Q2FY25 MTAR Technologies Ltd has a diversified order book valued at Rs. 942.25 cr, with Clean Energy- Fuel Cell, Hydel & Others leading at 54.1 percent, Clean Energy- Civil Nuclear Power contribute 14.7 percent, Space at 16.8 percent, Defence accounts 8.4 percent and Products & Others with 6 percent.
Financials
The company’s revenue rose by 14 percent from Rs 167.69 crore to Rs 191.64 crore in Q2FY24-25. Meanwhile, Net profit fell by 8 percent from Rs 20.46 crores to Rs 18.77 crore during the same period.
Key Financial ratios
MTAR Technologies Ltd has an Return on Equity (RoE) of 6 percent and a Return on Capital Employed (RoCE) of 8 percent. Furthermore, the company’s debt-to-equity ratio is 0.26.
Written by Sridhar
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