Shares of MTAR Technologies hit a record high of Rs 2,817.75 as they surged 15 percent on the BSE in Friday’s intraday trade on the back of over two-fold jump in trading volumes.
In the past two days, the stock of the aerospace & defense company has rallied 23 percent after the company received the Defence Industrial Licence for the production of various mechanical and electronic subsystems in the defense sector.
The approval of license obtained for the manufacturing of C41 SR Systems license obtained (Command Control Computers, Communication Intelligence Surveillance and Reconnaissance Systems) includes, Electronics Equipment required for ECM (Electronics Co, Design, Development, Manufacturing, Integration & upgradation of Special naval equipment and their subsystems & Air independent propulsion system designed for submarines.
In an exchange filing, MTAR Technologies said that the license will facilitate the ease of doing business with foreign multinational companies (MNCs) on various defense projects.
“The license will enable the company to be a partner with foreign MNCs and cater to both domestic & export markets by taking up projects under Buy (Indian), ‘Buy & Make (Indian)’ & ‘Make’ categories of acquisition, thereby increasing the share of defense in revenues,” the company said.
MTAR caters to Clean Energy — Civil Nuclear Power, Fuel Cells, Hydel and others, Space, and Defence sectors.
At 01:05 PM, the stock was quoting 10 percent higher at Rs 2,702, as compared to a 0.64 percent rise in the S&P BSE Sensex. A combined 4.4 million equity shares have, thus far, changed hands on the NSE and BSE. In the past three months, the stock has zoomed 50 percent.
MTAR is targeting revenue growth of 45 percent to 50 percent in FY24, backed by a robust order book with an EBITDA of 28 percent +/- 100 bps.
“Based on the visibility of various orders across different sectors, the company looks forward to a closing order book of at least Rs 1,500 crore by the end of FY24. Ramping up the sheet metal and specialized fabrication production is expected to yield better return ratios by the end of FY24,” the company said in its FY23 annual report.
