Buy MTAR Technologies; target of Rs 2900: Motilal Oswal

Motilal Oswal's research report on MTAR Technologies

MTAR Technologies (MTARTECH) witnessed a setback in its growth trajectory with a weak 2QFY26. Revenue/EBITDA declined 29%/54% YoY, as execution slowed across segments amid tariff-related negotiations. However, management boosted growth visibility for the near to medium term by raising its FY26 revenue growth guidance to 30-35% vs 25% earlier, while maintaining its EBITDA margin guidance at 21% (+/- 100bp). The company also guided for a closing order book of ~INR28b (up 2.9x vs FY25), indicating expectations of strong order inflow.

Outlook

We estimate a CAGR of 35%/50%/71% in revenue/EBITDA/adj. PAT over FY25 FY28. We reiterate our BUY rating on the stock with a TP of INR2,900 (40x Sep’27E EPS translating into 0.9x PEG).