Small cap is Vaishali Parekh’s technical pick; stock rises 200% from IPO
MTAR Technologies gained nearly 2% on Wednesday. It has nearly been two years since MTAR entered the Indian market’s race, and the stock has emerged as a multi-bagger with nearly 200% gains from its IPO in March 2021. Going from a three-digit to a four-digit stock price, MTAR has seen a broadly successful rally on exchanges despite extreme volatility that began in the early 2022s. There is more potential ahead in MTAR stock price as Prabhudas Lilladher’s Vaishali Parekh has added this stock to her technical picks. Parekh sets a target price of ₹1,900 on MTAR.
At the time of writing, MTAR was trading at ₹1,723.25 apiece up by ₹33.40 or 1.98% on BSE. The small cap‘s market value is nearly ₹5,301 crore at the moment.
The stock traded near the day’s high of ₹1,728.70 apiece.
MTAR launched its initial public offering (IPO) between March 3rd to 5th of 2021. The IPO issue price was set at ₹575 apiece.
From its IPO issue price, MTAR has skyrocketed by nearly 200% to date on Dalal Street.
The stock was listed at a premium of a whopping 85.03% on BSE at ₹1,063.90 apiece. From its listing price, the stock is now up by nearly 62% on the exchange.
MTAR’s 52-week high is 2,160.95 apiece and the 52-week low is ₹1,211.85 apiece. The stock is traded in the ‘A’ group category.
On Wednesday, in a note, Parekh said, “the stock has made a higher bottom formation on the daily chart and is on an upward trend currently moving past the significant 50EMA level of 1680 to improve the bias and overall the chart looks attractive for a further rise in the coming days.”
She added that the RSI has shown a trend reversal and has signaled a buy in this stock, indicating a positive bias with immense upside potential from here on.
Thereby, Parekh said, “With decent volume participation witnessed, we recommend buying this stock with an upside target of 1900 and a stop loss of 1650.”
Founded in 1970, MTAR is a leading national player in the precision engineering industry engaged in the manufacture of mission-critical precision components to serve projects of high national importance.
MTAR has seven strategically based manufacturing units including an export-oriented unit each based in Hyderabad, Telangana. MTAR caters to Clean Energy – Civil Nuclear Power, Fuel Cells, Hydel & Others, Space, and Defence sectors. The company has a long-standing relationship of over four decades with leading Indian organizations and global OEMs. well as in Asia.
In Q3FY23, MTAR posted a 136.2% YoY rise in net profit to ₹31.4 crore, while revenue from operations soared by 105.1% YoY to ₹160.2 crore. The company’s EBITDA was at ₹45 crore, higher by 97.4% YoY. As of December 31, 2022, the company’s order book stood at ₹1,183 crore.
Parvat Srinivas Reddy, Managing Director & Promoter, MTAR Technologies on February 9, 2023, in the Q3 release said, the company looks forward to continuing its growth momentum in FY24 with a robust revenue increase and sustainable margins backed by a healthy order book, and lucrative market opportunities available in Clean Energy – Fuel Cells, Hydel & Others, Civil Nuclear Power, Space and Defence sectors.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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