MTAR Technologies
MTAR Technologies
Aerospace & DefenseKey Fundamentals
SmallcapEngineeringAerospace & DefenseTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
3- Company is expected to give good quarter
- Company's median sales growth is 20.4% of last 10 years
- Company's working capital requirements have reduced from 145 days to 70.7 days
Weaknesses
5- Stock is trading at 29.0 times its book value
- Though the company is reporting repeated profits, it is not paying out dividend
- Promoter holding has decreased over last quarter: -1.09%
- Company has a low return on equity of 9.58% over last 3 years.
- Debtor days have increased from 115 to 140 days.
Growth Rate
AI Analysis — Bull vs Bear
MTAR Technologies has a market capitalisation of about ₹21,107 crore and trades at a P/E of 162.7 and a P/B of 26.39. Growth has sped up recently, with TTM sales up 53% and TTM profit up 127%, and the stock has returned 267% over one year. Over longer periods the picture is weaker: 3-year profit CAGR is -1%, 3-year average ROE is about 9.58%, and debtor days have risen from 115 to 140.
- Recent growth is strong. TTM sales grew 53% and TTM profit grew 127%, well above the 3-year sales CAGR of 15%.
- Revenue has grown steadily over time. Median sales growth over the last 10 years is 20.4%, with a 10-year sales CAGR of 27% and a 5-year sales CAGR of 29%.
- Working capital needs have fallen sharply, from 145 days to 70.7 days, which points to better cash conversion and a lighter balance sheet.
- Return on equity is improving. Last-year ROE was 13%, above the 3-year average of 10% and the 5- and 10-year averages of 11%.
- Over 10 years, profit has compounded at 88% a year and 5-year profit CAGR is 16%, showing the business can scale earnings over a long period.
- Shareholders have been rewarded over time, with stock CAGR of 37% over 5 years and 39% over 3 years.
- Sentiment on near-term results is positive: the company is expected to report a good quarter, which would add to the 127% TTM profit growth.
- The valuation is very high. A P/E of 162.7 and a P/B of 26.39 on a ₹21,107 crore market cap assume a lot of future growth, leaving little room for execution misses.
- Long-term returns on capital are weak compared with the valuation. Average ROE over the last 3 years is about 9.58%, which does not match a price of more than 25 times book value.
- Profit growth has been uneven. 3-year profit CAGR is -1%, which suggests the 127% TTM jump is partly a recovery from a low base rather than steady compounding.
- Receivables are getting worse. Debtor days rose from 115 to 140, which ties up cash and partly cancels out the gain from lower working capital days.
- Promoter holding fell by 1.09% in the last quarter, which can weigh on market sentiment.
- Shareholders get almost no cash return. The dividend yield is only 0.04%, and payouts are minimal despite repeated profits.
- The stock rose 267% in one year, much faster than its 3-year sales CAGR of 15%. Price has run ahead of fundamentals, which raises the risk of sharp swings if growth slows.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Promoter family trimming stakes Sep 18
Promoter Leelavathi Parvatha Reddy sold 20,000 shares on the open market, cutting her holding to 12,98,712 shares (4.22%). This follows promoter K Shalini selling 18,000 shares on Sep 4, which left her with 3,92,483 shares (1.27%).
- Stretched valuation after tripling Sep 10
The stock trades at a P/E of 166.43 and P/B of 25.44 after tripling in 2026 and gaining 390.23% over one year, against peers like HAL at 8.72%. It closed at ₹7,305, about 16% below its 52-week high of ₹8,714, and fell 2.61% that session.
- Promoter pledges shares for loan Sep 19
Promoter Kavitha Reddy Gangapatnam pledged 32,000 shares with 360 One Distribution Services on Sep 17, 2026 to take a loan. The amount is small, but new pledges coming alongside promoter sales add to the overhang.
- ₹1.1L Cr DAC defence approval Sep 10
The Defence Acquisition Council approved ₹1.1 lakh crore of purchases, with about 98% going to Indian companies. MD P Srinivas Reddy expects 'sizable' orders but said they will take some time, and he gave no figures.
- Record nuclear order book Sep 10
Management says the nuclear energy business has its highest-ever order book. It also expects growth both quarter-on-quarter and year-on-year, with an EBITDA margin of 23.90%.
- New oil and gas vertical Sep 10
MTAR plans to enter oil and gas around Oct-Nov 2026. This adds a new revenue stream beyond defence, nuclear and space.
- Leads defence sector rally Sep 4
The stock rose 3.80% to ₹7,079.50 on NSE, the top gain among defence stocks. The Nifty India Defence index rose 1.6% that day, helped by GE delivering three more F404 engines to HAL for Tejas Mk1A.
- AGM approves ₹2,000 Cr borrowing Sep 28
All six resolutions passed with strong support at the 27th AGM. These included raising the borrowing limit to ₹2,000 crore to fund capex and expansion, plus director re-appointments.
- Trading window closed for Q2FY27 Sep 23
The trading window for designated persons is closed from Oct 1, 2026 until 48 hours after Q2FY27 results are declared.
- Mumbai investor meetings held Sep 21
In-person one-on-one and group meetings with analysts and institutions took place in Mumbai on Sep 24, 2026, from 10:00 am to 6:00 pm.
- FY26 BRSR filed Sep 5
The FY26 Business Responsibility and Sustainability Report was filed with the exchanges on Sep 5, 2026 as part of the annual report, in line with SEBI rules.
TL;DR: MTAR has strong business momentum: a record nuclear order book, a new oil and gas vertical from Oct-Nov 2026, and a share of the ₹1.1 lakh crore DAC defence approvals ahead. The stock has tripled in 2026 and now trades at about 166x earnings. Ongoing promoter sales and a new pledge add to the risk at that valuation. The trend is still positive but the stock looks priced for perfection, so Q2FY27 results and actual defence order wins will decide whether the rally can continue.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 152 | 167 | 118 | 143 | 128 | 190 | 174 | 183 | 157 | 136 | 278 | 306 | 361 |
| Expenses | 119 | 130 | 95 | 125 | 112 | 154 | 141 | 149 | 128 | 119 | 214 | 244 | 276 |
| Operating Profit | 34 | 36 | 24 | 18 | 16 | 37 | 33 | 34 | 28 | 17 | 64 | 62 | 85 |
| OPM % | 22% | 22% | 20% | 13% | 13% | 19% | 19% | 19% | 18% | 13% | 23% | 20% | 24% |
| Other Income | 4 | 1 | 1 | 1 | 1 | 2 | 3 | 0 | 1 | 4 | -1 | 17 | 8 |
| Interest | 6 | 5 | 6 | 6 | 5 | 5 | 6 | 6 | 6 | 6 | 8 | 10 | 16 |
| Depreciation | 5 | 6 | 6 | 6 | 6 | 8 | 9 | 10 | 8 | 9 | 9 | 9 | 9 |
| PBT | 27 | 26 | 13 | 7 | 6 | 25 | 22 | 19 | 15 | 6 | 46 | 60 | 68 |
| Tax % | 26% | 20% | 19% | 32% | 28% | 26% | 25% | 25% | 26% | 24% | 24% | 26% | 25% |
| Net Profit | 20 | 21 | 11 | 5 | 5 | 19 | 16 | 14 | 11 | 5 | 35 | 44 | 50 |
| EPS in Rs | 6.44 | 6.77 | 3.43 | 1.65 | 1.48 | 6.11 | 5.31 | 4.62 | 3.65 | 1.49 | 11.43 | 14.42 | 16.42 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 81 | 81 | 101 | 157 | 184 | 214 | 246 | 322 | 573 | 580 | 676 | 876 | 1,080 |
| Expenses | 79 | 71 | 113 | 125 | 130 | 156 | 163 | 228 | 419 | 468 | 555 | 705 | 853 |
| Operating Profit | 2 | 11 | -12 | 32 | 54 | 58 | 83 | 94 | 154 | 112 | 121 | 171 | 228 |
| OPM % | 2.3% | 13% | -12% | 20% | 29% | 27% | 34% | 29% | 27% | 19% | 18% | 20% | 21% |
| Other Income | 3 | 1 | 1 | 1 | 4 | 4 | 1 | 9 | 20 | 6 | 6 | 20 | 27 |
| Interest | 8 | 7 | 5 | 4 | 4 | 5 | 7 | 7 | 14 | 22 | 22 | 29 | 39 |
| Depreciation | 5 | 5 | 5 | 11 | 11 | 12 | 13 | 14 | 18 | 23 | 32 | 34 | 36 |
| PBT | -7 | -1 | -22 | 17 | 42 | 46 | 65 | 82 | 141 | 73 | 72 | 127 | 180 |
| Tax % | -36% | -133% | -30% | 68% | 6% | 31% | 29% | 26% | 26% | 23% | 26% | 25% | — |
| Net Profit | -5 | 0 | -15 | 5 | 39 | 31 | 46 | 61 | 104 | 56 | 54 | 95 | 135 |
| EPS in Rs | -1.64 | 0.06 | -5.34 | 1.92 | 13.89 | 11.7 | 14.98 | 19.79 | 33.84 | 18.29 | 17.51 | 30.99 | 43.76 |
| Div. Payout % | 0% | 0% | 0% | 0% | 22% | 43% | 40% | 15% | 0% | 0% | 0% | 0% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 28 | 28 | 28 | 28 | 28 | 27 | 31 | 31 | 31 | 31 | 31 | 31 |
| Reserves | 180 | 181 | 166 | 177 | 207 | 198 | 446 | 489 | 590 | 646 | 700 | 795 |
| Borrowings | 49 | 26 | 29 | 20 | 29 | 29 | 17 | 96 | 143 | 190 | 177 | 377 |
| Other Liabilities | 48 | 38 | 71 | 56 | 41 | 92 | 93 | 112 | 299 | 139 | 220 | 542 |
| Total Liabilities | 306 | 273 | 294 | 281 | 305 | 346 | 586 | 728 | 1,063 | 1,006 | 1,128 | 1,744 |
| Fixed Assets | 145 | 146 | 148 | 152 | 162 | 155 | 167 | 196 | 282 | 332 | 425 | 497 |
| CWIP | 8 | 8 | 8 | 2 | 6 | 12 | 11 | 44 | 63 | 68 | 53 | 34 |
| Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 62 | 34 | 7 | 7 | 222 |
| Other Assets | 152 | 119 | 138 | 127 | 137 | 179 | 409 | 425 | 683 | 600 | 643 | 990 |
| Total Assets | 306 | 273 | 294 | 281 | 305 | 346 | 586 | 728 | 1,063 | 1,006 | 1,128 | 1,744 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | — | — | — | 14 | 42 | 56 | 9 | -30 | 9 | 55 | 102 | 192 |
| Investing | — | — | — | -1 | -33 | -12 | -22 | -145 | -88 | -54 | -104 | -347 |
| Financing | — | — | — | -14 | -7 | -41 | 180 | 54 | 32 | 25 | -35 | 155 |
| Net Cash Flow | — | — | — | -1 | 2 | 3 | 167 | -121 | -47 | 27 | -37 | -1 |
| Free Cash Flow | — | — | — | 12 | 18 | 44 | -14 | -121 | -97 | -35 | 2 | 65 |
| CFO/OP | — | — | — | 53 | 96 | 109 | 24 | -12 | 27 | 69 | 96 | 127 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 71 | 88 | 140 | 114 | 100 | 105 | 114 | 154 | 132 | 92 | 113 | 140 |
| Inventory Days | — | — | — | 269 | 240 | 382 | 467 | 535 | 524 | 421 | 369 | 397 |
| Days Payable | — | — | — | 87 | 35 | 155 | 158 | 179 | 296 | 74 | 112 | 119 |
| Cash Conversion Cycle | 71 | 88 | 140 | 296 | 305 | 332 | 423 | 510 | 360 | 438 | 370 | 419 |
| Working Capital Days | 418 | 331 | 177 | 132 | 114 | 59 | 175 | 191 | 189 | 194 | 170 | 71 |
| ROCE % | 0% | 2% | -7% | 10% | 18% | 19% | 19% | 16% | 22% | 11% | 11% | 15% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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64 extracted metrics + investor summaries across FY15–FY27.
Documents
Frequently Asked Questions about MTAR Technologies
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Company Information
MTAR develop and manufactures components and equipment for the defense, aerospace, nuclear and clean energy sectors. The co. was incorporated in 1970 by the promoters, Mr PR Reddy, Mr KSN Reddy and Mr PJ Reddy, to cater to the technical and engineering needs of the Indian govt in the post embargo regime. MTAR has manufacturing footprints in Hyderabad with seven units spread across a 4 km radius and a dedicated export facility as well. [1]In addition, the company also supplies specialised products such as Ball Screws, Water Lubricated Bearings, Roller Screws, Electro-Mechanical Actuation Systems, ASP assemblies etc. that find applications across diverse sectors.[2]
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