{"id":2400,"date":"2021-03-02T16:38:18","date_gmt":"2021-03-02T11:08:18","guid":{"rendered":"https:\/\/blog.tickertape.in\/?p=2400"},"modified":"2021-12-29T11:22:11","modified_gmt":"2021-12-29T05:52:11","slug":"mtar-technologies-ltd-ipo-the-9th-one-in-2021-so-far","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/mtar-technologies-ltd-ipo-the-9th-one-in-2021-so-far\/","title":{"rendered":"MTAR Technologies IPO: the 9th one in 2021 so far"},"content":{"rendered":"\n<p>In just 2 months of 2021, 8 IPOs have made it to the Indian stock markets. On 3rd Mar 2021, MTAR Technologies Ltd is set to join the pack. In this article, we analyse the company and its <a href=\"https:\/\/www.tickertape.in\/blog\/ipo-investment\/\">IPO<\/a> to equip you with vital information needed to make informed investment decisions.<\/p>\n\n\n\n<p><strong>The article covers:<\/strong><\/p>\n\n\n\n<p><a href=\"#About\">About MTAR Technologies Ltd<\/a><\/p>\n\n\n\n<p><a href=\"#Timeline\">Timeline of MTAR Technologies Limited\u2019s growth<\/a><\/p>\n\n\n\n<p><a href=\"#Products\">Products of MTAR Technologies Ltd<\/a><\/p>\n\n\n\n<p><a href=\"#Sectors\">Sectors serviced by MTAR Technologies<\/a><\/p>\n\n\n\n<p><a href=\"#Clientele\">Clientele of MTAR Technologies Ltd<\/a><\/p>\n\n\n\n<p><a href=\"#About\">About MTAR Technologies Ltd IPO<\/a><\/p>\n\n\n\n<p><a href=\"#Constituents\">Constituents and subscription of MTAR Technologies\u2019 IPO<\/a><\/p>\n\n\n\n<p><a href=\"#Book\">Book running lead managers and registrar of MTAR IPO<\/a><\/p>\n\n\n\n<p><a href=\"#Purpose\">Purpose of MTAR Technologies Ltd IPO<\/a><\/p>\n\n\n\n<p><a href=\"#Valuation\">Valuation of MTAR Technologies\u2019 Ltd<\/a><\/p>\n\n\n\n<p><a href=\"#Promoter\">Promoter holding of MTAR Technologies<\/a><\/p>\n\n\n\n<p><a href=\"#Financials\">Financials of MTAR Technologies Ltd<\/a><\/p>\n\n\n\n<p><a href=\"#Peer\">Peer analysis<\/a><\/p>\n\n\n\n<p><a href=\"#Strengths\">Strengths of MTAR Technologies Limited<\/a><\/p>\n\n\n\n<p><a href=\"#Risks\">Risks of MTAR Technologies Ltd<\/a><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/mtar-technologies-ltd-ipo-the-9th-one-in-2021-so-far\/#About-MTAR-Technologies-Ltd\" title=\"About MTAR Technologies Ltd\">About MTAR Technologies Ltd<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/mtar-technologies-ltd-ipo-the-9th-one-in-2021-so-far\/#Timeline-of-MTAR-Technologies-Limiteds-growth\" title=\"Timeline of MTAR Technologies Limited\u2019s growth\">Timeline of MTAR Technologies Limited\u2019s growth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/mtar-technologies-ltd-ipo-the-9th-one-in-2021-so-far\/#Products-of-MTAR-Technologies-Ltd\" title=\"Products of MTAR Technologies Ltd\">Products of MTAR Technologies Ltd<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/mtar-technologies-ltd-ipo-the-9th-one-in-2021-so-far\/#Sectors-serviced-by-MTAR-Technologies\" title=\"Sectors serviced by MTAR Technologies\">Sectors serviced by MTAR Technologies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/mtar-technologies-ltd-ipo-the-9th-one-in-2021-so-far\/#Clientele-of-MTRA-Technologies-Ltd\" title=\"Clientele of MTRA Technologies Ltd\">Clientele of MTRA Technologies Ltd<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/mtar-technologies-ltd-ipo-the-9th-one-in-2021-so-far\/#About-MTAR-Technologies-Ltd-IPO\" title=\"About MTAR Technologies Ltd IPO\">About MTAR Technologies Ltd IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/mtar-technologies-ltd-ipo-the-9th-one-in-2021-so-far\/#Constituents-and-subscription-of-MTAR-Technologies-IPO\" title=\"Constituents and subscription of MTAR Technologies\u2019 IPO\">Constituents and subscription of MTAR Technologies\u2019 IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/mtar-technologies-ltd-ipo-the-9th-one-in-2021-so-far\/#Book-running-lead-managers-and-registrar-of-MTAR-IPO\" title=\"Book running lead managers and registrar of MTAR IPO\">Book running lead managers and registrar of MTAR IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/mtar-technologies-ltd-ipo-the-9th-one-in-2021-so-far\/#Purpose-of-MTAR-Technologies-Ltd-IPO\" title=\"Purpose of MTAR Technologies Ltd IPO\">Purpose of MTAR Technologies Ltd IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/mtar-technologies-ltd-ipo-the-9th-one-in-2021-so-far\/#Valuation-of-MTAR-Technologies-Ltd\" title=\"Valuation of MTAR Technologies\u2019 Ltd\">Valuation of MTAR Technologies\u2019 Ltd<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/mtar-technologies-ltd-ipo-the-9th-one-in-2021-so-far\/#Promoter-holding-of-MTAR-Technologies\" title=\"Promoter holding of MTAR Technologies\">Promoter holding of MTAR Technologies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/mtar-technologies-ltd-ipo-the-9th-one-in-2021-so-far\/#Financials-of-MTAR-Technologies-Ltd\" title=\"Financials of MTAR Technologies Ltd\">Financials of MTAR Technologies Ltd<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/blog\/mtar-technologies-ltd-ipo-the-9th-one-in-2021-so-far\/#Sector-wise-breakdown-of-MTAR-Technologies-order-book\" title=\"Sector-wise breakdown of MTAR Technologies\u2019 order book\">Sector-wise breakdown of MTAR Technologies\u2019 order book<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tickertape.in\/blog\/mtar-technologies-ltd-ipo-the-9th-one-in-2021-so-far\/#Peer-analysis\" title=\"Peer analysis\">Peer analysis<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tickertape.in\/blog\/mtar-technologies-ltd-ipo-the-9th-one-in-2021-so-far\/#Strengths-of-MTAR-Technologies-Limited\" title=\"Strengths of MTAR Technologies Limited\">Strengths of MTAR Technologies Limited<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.tickertape.in\/blog\/mtar-technologies-ltd-ipo-the-9th-one-in-2021-so-far\/#Risks-of-MTAR-Technologies-Ltd\" title=\"Risks of MTAR Technologies Ltd\">Risks of MTAR Technologies Ltd<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"About\"><span class=\"ez-toc-section\" id=\"About-MTAR-Technologies-Ltd\"><\/span><strong>About MTAR Technologies Ltd<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Backed by Mathew Cyriac, the former co-head of private <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-equity\/\">equity<\/a> Blackstone, MTAR Technologies is a Hyderabad-based precision engineering solutions company. It manufactures nuclear, defence, and aerospace equipment, which are used in projects of high national importance.<\/p>\n\n\n\n<h2 class=\"has-text-align-left wp-block-heading\" id=\"Timeline\"><span class=\"ez-toc-section\" id=\"Timeline-of-MTAR-Technologies-Limiteds-growth\"><\/span><strong>Timeline of MTAR Technologies Limited\u2019s growth<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1100\" height=\"5053\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/03\/Mtar-Infographic-01.png\" alt=\"\" class=\"wp-image-2407\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/03\/Mtar-Infographic-01.png 1100w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/03\/Mtar-Infographic-01-65x300.png 65w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/03\/Mtar-Infographic-01-223x1024.png 223w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/03\/Mtar-Infographic-01-768x3528.png 768w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/03\/Mtar-Infographic-01-446x2048.png 446w\" sizes=\"(max-width: 1100px) 100vw, 1100px\" \/><\/figure><\/div>\n\n\n\n<p>Here\u2019s a snapshot of the various milestones achieved by the company:<\/p>\n\n\n\n<p>1970: started as a partnership firm and established MTAR Unit 1 for BHEL orders<\/p>\n\n\n\n<p>1972: received its first order from HMT<\/p>\n\n\n\n<p>1975: started MTAR Unit 4 for Rough Machining Operations<\/p>\n\n\n\n<p>1978: launched MTAR Unit 5, a Heat Treatment and Surface Treatment Plant<\/p>\n\n\n\n<p>1983: began supplying components to ISRO<\/p>\n\n\n\n<p>1985: started manufacturing ball screws<\/p>\n\n\n\n<p>1986: entered manufacturing with DRDO as customer<\/p>\n\n\n\n<p>1988: added HAL, GTRE, and ADA to its customer base<\/p>\n\n\n\n<p>1989: supplied the First Vikas Engine, a liquid-fuelled rocket engine<\/p>\n\n\n\n<p>1990: incorporated as a company<\/p>\n\n\n\n<p>1999: started manufacturing Fin assembly, base shroud, and pneumatic components for Agni programs<\/p>\n\n\n\n<p>2002: established MTAR Unit 2 for additional capacity for defence and space sectors<\/p>\n\n\n\n<p>2008: started manufacturing grid plates for a 500 mega-watt Reactor<\/p>\n\n\n\n<p>2010: established MTAR Unit 7, a 100% Export Oriented Unit<\/p>\n\n\n\n<p>2011: commenced the manufacture of power units for Bloom Energy<\/p>\n\n\n\n<p>2018: started exporting defence exports<\/p>\n\n\n\n<p>2020: started developmental activity for roller screws, substitute for imported components<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Products\"><span class=\"ez-toc-section\" id=\"Products-of-MTAR-Technologies-Ltd\"><\/span><strong>Products of MTAR Technologies Ltd<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>MTAR Technologies is involved in building critical components and assemblies including:<\/p>\n\n\n\n<ul><li>Missile systems<\/li><li>Aerospace engines<\/li><li>Aircraft components<\/li><li>Nuclear and pressurized water reactors<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Sectors\"><span class=\"ez-toc-section\" id=\"Sectors-serviced-by-MTAR-Technologies\"><\/span><strong>Sectors serviced by MTAR Technologies<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Clean Energy<\/li><li>Nuclear<\/li><li>Space<\/li><li>Defence<\/li><\/ul>\n\n\n\n<p>MTAR Technologies also develops import substitutes such as ball screws and water-lubricated bearings used in the above sectors. The company has 3 products in the clean energy sector, 14 products in the nuclear sector, and 6 products in the space and defence sectors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Clientele\"><span class=\"ez-toc-section\" id=\"Clientele-of-MTRA-Technologies-Ltd\"><\/span><strong>Clientele of MTRA Technologies Ltd<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The company\u2019s clients include:<\/p>\n\n\n\n<ul><li>Bharat Dynamics<\/li><li>Hindustan Aeronautics<\/li><li>US-based Bloom Energy Corp<\/li><li>Nuclear Power Corporation of India<\/li><li>Indian Space Research Organization<\/li><li>Research and Development Organisation<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"IPO\"><span class=\"ez-toc-section\" id=\"About-MTAR-Technologies-Ltd-IPO\"><\/span><strong>About MTAR Technologies Ltd IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>MTAR Technologies is the 9<sup>th<\/sup> one to offer IPO so far in 2021. It has already raised Rs 100 cr via a pre-IPO placement. Here are the details of the MTAR Technologies IPO.<\/p>\n\n\n\n<ul><li>The IPO, which is worth ~Rs 600 cr, is set to open on 3<sup>rd<\/sup> Mar and close on 5<sup>th<\/sup> Mar<\/li><li>The face value of the shares will be Rs 10 apiece and the price band for the IPO is fixed at Rs 574 to Rs 575 per share. The lot size is 26 and multiples thereof<\/li><li>Stocks would be listed on both <a href=\"https:\/\/www.tickertape.in\/blog\/national-stock-exchange\/\">NSE<\/a> and BSE and the tentative date is 16<sup>th<\/sup> Mar 2021<\/li><li>Implied market cap post issue is expected to be between Rs 1,766 cr and Rs 1,769 cr<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Constituents\"><span class=\"ez-toc-section\" id=\"Constituents-and-subscription-of-MTAR-Technologies-IPO\"><\/span><strong>Constituents and subscription of MTAR Technologies\u2019 IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The issue size of the IPO is up to 1,03,72,419 <a href=\"https:\/\/www.tickertape.in\/blog\/what-are-equity-shares-meaning-types-features-limitations-and-more\/\">equity shares<\/a> consisting of:<\/p>\n\n\n\n<ul><li>Fresh issue of up to 21,48,149 shares<\/li><li><a href=\"https:\/\/www.tickertape.in\/blog\/offer-for-sale\/\">Offer for sale<\/a> of up to 82,24,270 shares<\/li><\/ul>\n\n\n\n<p>The IPO is reserved for subscription as follows:<\/p>\n\n\n\n<ul><li>50% for Qualified Institutional Buyers (QIB)<\/li><li>15% for non-institutional investors<\/li><li>35% for retail investors<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Book\"><span class=\"ez-toc-section\" id=\"Book-running-lead-managers-and-registrar-of-MTAR-IPO\"><\/span><strong>Book running lead managers and registrar of MTAR IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>JM Financial and IIFL Securities are the running lead managers of the IPO and KFin Technologies Private Ltd is the registrar.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Purpose\"><span class=\"ez-toc-section\" id=\"Purpose-of-MTAR-Technologies-Ltd-IPO\"><\/span><strong>Purpose of MTAR Technologies Ltd IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The company looks to use the proceeds of the IPO for:<\/p>\n\n\n\n<ul><li>Debt repayment<\/li><li>Long-term working capital requirements<\/li><li>General corporate purpose<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Valuation\"><span class=\"ez-toc-section\" id=\"Valuation-of-MTAR-Technologies-Ltd\"><\/span><strong>Valuation of MTAR Technologies\u2019 Ltd<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>At the higher price band of Rs 575, the stock is valued at 20x the earnings of Rs 28.3\u2014FY 2020 earnings<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Promoter\"><span class=\"ez-toc-section\" id=\"Promoter-holding-of-MTAR-Technologies\"><\/span><strong>Promoter holding of MTAR Technologies<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<iframe loading=\"lazy\" width=\"600\" height=\"400\" src=\"https:\/\/live.amcharts.com\/DRkND\/embed\/\" frameborder=\"0\"><\/iframe>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Financials\"><span class=\"ez-toc-section\" id=\"Financials-of-MTAR-Technologies-Ltd\"><\/span><strong>Financials of MTAR Technologies Ltd<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Despite the government slashing the defence budget, MTAR has earned consistent profits. The company has the lowest gearing ratio in the industry and a significant interest coverage ratio. Here are the other details:<\/p>\n\n\n\n<ul><li>It has grown at a <a href=\"https:\/\/www.tickertape.in\/blog\/compound-annual-growth-rate\/\">CAGR<\/a> of 16.5% over the last 3 yrs<\/li><li>For FY 2020, its <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-ebitda\/\">EBITDA<\/a> margins were 28.5% and net <a href=\"https:\/\/www.tickertape.in\/blog\/margin-requirements\/\">margin<\/a> was 14%<\/li><\/ul>\n\n\n\n<p>Here\u2019s the snapshot of MTAR<strong> <\/strong>Technologies Ltd\u2019s financial performance over the last 3 yrs (amounts is Rs cr)<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"588\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/03\/MTAR-table-1024x588.jpg\" alt=\"\" class=\"wp-image-2404\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/03\/MTAR-table-1024x588.jpg 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/03\/MTAR-table-300x172.jpg 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/03\/MTAR-table-768x441.jpg 768w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/03\/MTAR-table-1536x882.jpg 1536w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>The total income of MTAR grew at a CAGR of 16.57%, profit after tax at a CAGR of 14.39%, and total assets at a CAGR of 11%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Breakdown\"><span class=\"ez-toc-section\" id=\"Sector-wise-breakdown-of-MTAR-Technologies-order-book\"><\/span><strong>Sector-wise breakdown of MTAR Technologies\u2019 order book<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The aggregate order book of MTAR Technologies as on 31<sup>st<\/sup> Dec 2020 was Rs 336 cr. Following is the sector-wise breakdown of the same:<\/p>\n\n\n\n<iframe loading=\"lazy\" width=\"600\" height=\"400\" src=\"https:\/\/live.amcharts.com\/jdmNG\/embed\/\" frameborder=\"0\"><\/iframe>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Peer\"><span class=\"ez-toc-section\" id=\"Peer-analysis\"><\/span><strong>Peer analysis<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>MTAR Technologies has no listed peers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Strengths\"><span class=\"ez-toc-section\" id=\"Strengths-of-MTAR-Technologies-Limited\"><\/span><strong>Strengths of MTAR Technologies Limited<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The Indian Precision Engineering Industry is worth Rs 409.8 cr and is expected to grow at a CAGR of 6% to 7% between 2020 and 2025. MTAR, being a leading player in the sector can capitalise on such a scope<\/li><li>MTAR boasts a worldwide clientele, attractive return ratios, and sound R&amp;D base and technological progress. Coupled with a healthy order book, competitive edge, and superior profitability compared to its peers, MTAR Technologies commands a premium<\/li><li>MTAR Technologies Limited is equipped with precision engineering expertise that it employs in manufacturing, testing, and quality control of products<\/li><li>MTAR started as a partnership firm but is now a renowned company in its industry. Over the years, it has developed a wide product portfolio and caters to diverse segments<\/li><li>It has 7 manufacturing facilities. One of them is an export-oriented unit that is located in Hyderabad. The unit has been rendering its services to the clean energy, aerospace, and defence sectors for over 4 decades now<\/li><li>Make in India, aim to exporter defence goods, and increasing budgetary allocations to defence and space sectors offer the company potential to grow<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Risks\"><span class=\"ez-toc-section\" id=\"Risks-of-MTAR-Technologies-Ltd\"><\/span><strong>Risks of MTAR Technologies Ltd<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>A disruption in the supply chain can have a huge impact on MTAR\u2019s revenue<\/li><li>Because of the critical nature and high national importance of its products, any error in quality requirements and failure to adhere to them can cost MTAR dearly<\/li><li>As of 31st Dec 2020, the top 3 clients of 39 contributed 83.55% of MTAR Technologies Ltd&#8217;s revenue. Any loss of these clients will douse the demand for its products and impact the company\u2019s revenue<\/li><li>MTAR has a heavy dependency on government entities such as ISRO, NPCIL, and DRDO. A reduction of the budget in the respective sectors can adversely impact the company<\/li><li>Liberalization of the defence and space sectors would lead to stiff- competition to MTAR\u2019s business<\/li><\/ul>\n\n\n\n<p>That\u2019s about it folks. We hope these points, in addition to your research, helps you make meaningful investing decisions.<br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>MTAR Technologies is a leading company in the precision engineering sector. It serves the clean energy, defence, and space sector<\/p>\n","protected":false},"author":27,"featured_media":2424,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[9,1727],"tags":[222,226,224,225,223],"acf":[],"modified_by":"Aradhana Gotur","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/03\/FINAL-MTAR.jpg?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2400"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=2400"}],"version-history":[{"count":6,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2400\/revisions"}],"predecessor-version":[{"id":6241,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2400\/revisions\/6241"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/2424"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=2400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=2400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=2400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}