Buy MTAR Technologies; target of Rs 2100: Motilal Oswal

Motilal Oswal's research report on MTAR Technologies

MTARTECH derives the majority of its revenue (~60% in 1HFY25) from the clean energy segments, with most of it coming from one customer, Bloom Energy (BE). As the transitory impact of BE’s product changes is over now, we expect the company to report strong growth in the near term in this segment, led by the revival of orders from BE and the addition of new clients. MTARTECH witnessed a rough patch over the last couple of quarters due to product transition by BE. As the transition is completed, we are witnessing strong demand for BE’s fuel cells, thereby boosting our confidence on the company’s near-term growth outlook.

Outlook

We estimate MTARTECH to deliver a CAGR of 28%/42%/58% in revenue/ EBITDA/adj. PAT over FY24-27 on the back of strong order inflows. We retain our BUY rating on the stock with a TP of INR2,100 (34x Dec’26E EPS).