MTAR Technologies share price soars over 88% to its IPO price after getting listed
MTAR Technologies IPO share price closed at Rs 1082.5, up Rs 507.5 or 88.3%. MTAR Technologies IPO listing happened at Rs 1050 on NSE. The share price witnessed good buying after getting listed. MTAR Technologies share price today has jumped to Rs 1154.9. The market cap of the company is Rs 3330 cr.
MTAR Technologies IPO share price closed at Rs 1082.5, up Rs 507.5 or 88.3%. MTAR Technologies IPO listing happened at Rs 1050 on NSE. The share price witnessed good buying after getting listed. MTAR Technologies share price today has jumped to Rs 1154.9. The market cap of the company is Rs 3330 cr. The company is from Aerospace and Defence sector. Analysts and Broking Houses believe that stock will good buying from fund houses and HNIs going forward considering the strong business model and excellent management.
The initial public offering received a strong response and was subscribed more than 200 times. Retail Investors who got the allotment are extremely excited and they were expecting bumper returns on listing date. HNIs and Fund Houses are looking forward to buying into MTAR Technologies as they are confident in the management and the business model of the company, according to some analysts.
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MTAR Technologies: Complex product manufacturing capability with healthy order book
MTAR Technologies manufactures a wide range of critical engineered products and thus enjoys high entry barriers, increased customer dependency and long standing clients’ relationship. In fact, MTAR Technologies has been a sole supplier from India to USbased Bloom Energy (BE). Its revenue is well diversified: clean energy (49% of 9M FY21 sales), nuclear (27%), space and defence (21%) and others (3%). >50% of its revenue comes from the export market. Its order book is healthy at Rs 3.4 bn which is 1.6xFY20 revenues.
MTAR Technologies Healthy Financials:
Over FY18-20, MTAR Technologies Revenue/EBITDA/PAT grew at a CAGR of 16%/35%/140% while EBITDA margins expanded 714bps to 27.1% due to rising export share (higher margin). In 9M FY21, Revenue/EBITDA/PAT grew 16%/22%/25% YoY, while EBITDA margin further improved to 29.9%. It has negligible debt on its books which post IPO will further reduce to zero. However it is working capital intensive (180 days) and its asset turnover stands at 0.8x, thus resulting in RoE of 14% (FY20).
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05:14 AM IST