Subscribe to MTAR Technologies: Motilal Oswal
Motilal Oswal has come out with its report on MTAR Technologies. The research firm has recommended to ''Subscribe'' the ipo in its research report as on March 02, 2021.
March 03, 2021 / 05:40 PM IST
Motilal Oswal IPO report on MTAR Technologies
MTAR Technologies Ltd (MTL) manufactures hi-precision indigenous components, subsystems, assemblies for projects of national importance. Complex product manufacturing capability with healthy order book: MTL manufactures a wide range of critical engineered products and thus enjoys high entry barriers, increased customer dependency and long standing clients’ relationship. Infact, MTL has been a sole supplier from India to USbased Bloom Energy (BE). Its revenue is well diversified: clean energy (49% of 9MFY21 sales), nuclear (27%), space and defence (21%) and others (3%). >50% of its revenue come from the export market. Its order book is healthy at INR3.4bn which is 1.6xFY20 revenues.
Valuation and Outlook
Hence we recommend Subscribe for Long Term. Further given the current buoyant market and high interest for defence stocks, the issue could see listing gains as well. Risk: 49% of its revenues is derived from a single customer - Bloom Energy, US.
For all IPO stories, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.