Buy MTAR Technologies; target of Rs 1900: Motilal Oswal

Motilal Oswal's research report on MTAR Technologies

MTAR Technologies (MTARTECH) has been a key player in India’s aerospace industry with a longstanding association with ISRO, supplying critical assemblies for several key space missions. Leveraging this expertise and established credibility, the company is consistently onboarding global MNC aerospace clients. The aerospace segment currently contributes ~11% to MTARTECH’s total revenue, and this share is expected to rise to 16% by FY27.

Outlook

We estimate MTARTECH to clock a CAGR of 28%/47%/77% in revenue/ EBITDA/adj. PAT over FY25-27 on the back of strong order inflows. We reiterate our BUY rating on the stock with a TP of INR1,900 (35x FY27 EPS).