The space, defense, nuclear, and clean energy sectors in India show strong growth potential. The space industry, led by ISRO and private firms like Skyroot Aerospace, is expanding with satellite launches, space tourism, and interplanetary missions.
India’s defense sector, with companies like HAL, Bharat Dynamics, and L&T, is set for growth as defense modernization and indigenous production gain momentum. The nuclear energy market, with players like NPCIL, aims to increase capacity through new reactors, supporting India’s energy needs.
The clean energy sector, driven by companies like Adani Green, Tata Power, and ReNew Power, is focused on renewable energy projects, especially solar and wind, to reduce carbon emissions and improve energy security. These industries are expected to grow rapidly, driven by government initiatives and private investments. One company that deals in all these sectors is MTAR Technologies Limited.
Share Price
The share price of MTAR TEch is currently trading at Rs. 1,629 up by 4.57% from its previous close of Rs. 1,556.2 as of December 19, 2024.
Recent Update
MTAR Technologies: Strong Growth Outlook with a Target of Rs 2100 Motilal Oswal has given a “BUY” rating on MTAR Technologies with a target price of Rs 2100, driven by the company’s strong growth prospects. MTARTECH derives nearly 60% of its revenue from the clean energy segment, primarily from its key customer, Bloom Energy. The product transition phase faced by Bloom Energy has now concluded, leading to a significant revival of orders and strong demand for Bloom Energy’s fuel cells. This rebound is expected to contribute to MTAR’s robust performance in the near term.
Revenue and Profitability Growth Expected
MTAR Technologies is expected to deliver impressive growth with a compound annual growth rate (CAGR) of 28% in revenue, 42% in EBITDA, and 58% in adjusted PAT from FY24 to FY27. This growth is underpinned by a strong order book, particularly in the clean energy segment. As product transitions stabilize, the company’s revenue streams are expected to strengthen, improving its profitability outlook.
Strong Demand Boosts Confidence
With the completion of Bloom Energy’s product transition, MTAR Technologies is well-positioned to benefit from the revived demand for fuel cells. This improvement in demand, alongside new client acquisitions, further strengthens the company’s growth trajectory, increasing investor confidence in its performance and prospects for the upcoming years.
Continued Focus on the Clean Energy Segment
MTAR’s clean energy division, which constitutes a major part of its revenue, remains a core area of focus. The ongoing developments in fuel cell technology and the addition of new customers are expected to drive continued success for the company, making it a strong player in the clean energy sector in the years ahead.
About the Company
MTAR Technologies, founded in 1970 by Mr. PR Reddy, Mr. KSN Reddy, and Mr. PJ Reddy, is a leading manufacturer of components and equipment for the defense, aerospace, nuclear, and clean energy sectors. Established to meet the Indian government’s technical and engineering needs post-embargo, MTAR has become a key player in these critical industries.
The company operates seven manufacturing units in Hyderabad, within a 4 km radius, and has a dedicated export facility. MTAR supplies specialized products like Ball Screws, Water Lubricated Bearings, Roller Screws, Electro-Mechanical Actuation Systems, and ASP assemblies, which are used across a wide range of industries, demonstrating its diverse application and strong industry presence.
Written By: DIpangshu Kundu
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.
