Shares of MTAR Technologies Ltd have demonstrated exceptional performance in 2026, rallying an impressive 226.77% year-to-date. The precision engineering firm's stock closed recently at Rs 7,820, marking a 4.17% increase in Tuesday's trading.
Brokerage Sees Significant Growth Potential
Investment firm JM Financial has initiated coverage on MTAR Technologies with a 'BUY' rating, projecting a 12-month target price of Rs 9,375. This optimistic outlook is underpinned by MTAR's established expertise and robust relationships with prominent domestic and global clients, notably US-based Bloom Energy.
Key Customer and Diverse Capabilities
Bloom Energy, a leading US-based fuel-cell company, stands as a crucial client for MTAR Technologies, contributing more than half of its total revenue. MTAR's capabilities span a wide array of high-growth sectors, including clean energy, civil nuclear power, aerospace and defence, space, and oil and gas (O&G). This diversification positions the company well for sustained expansion.
Strong Order Backlog and Financial Projections
According to JM Financial, MTAR boasts a substantial order backlog of Rs 5,100 crore. This, combined with structural growth opportunities across its operational domains, offers multi-year revenue visibility for the company.
- Revenue Growth: JM Financial anticipates MTAR Technologies to report a 66% revenue Compound Annual Growth Rate (CAGR) between FY26 and FY29E.
- Profit After Tax (PAT) Growth: The brokerage also forecasts a remarkable 92% PAT CAGR over the same period.
- Return Metrics: Return on Equity (RoE) and Return on Capital Employed (RoCE) are estimated to climb to 37% and 33% respectively by FY29E.
On the valuation front, JM Financial notes that MTAR is trading at 49 times its FY28E earnings and 32 times its FY29E earnings, highlighting a favorable PEG ratio of 0.46x over the FY26-FY29E period.
"As Bloom scales up its deployments globally to support its robust product order backlog of $6 billion, MTAR stands to benefit through higher volumes, incremental orders and deeper value-chain integration," JM Financial stated, emphasizing the symbiotic relationship between the two companies.
The brokerage firm concludes its assessment by valuing MTAR Technologies at 42 times its FY29E earnings, underscoring its confidence in the company's future trajectory.