Buy Retained On MTAR By Motilal Oswal, Sees 35% Upside; Here's Why

Motilal Oswal Report

MTAR Technologies Ltd., being the key supplier of precision engineered systems to large global MNCs, government departments, and large Indian public and private sector enterprises, has over the years created a niche for itself in the industry.

As the largest supplier of fuel cell components to BE (global leader), the company will benefit from the emerging demand for fuel cells in the coming years. Further, the company is also increasing its wallet share with BE by offering more products, such as precision sheet metal fabrication and enclosures, with the aim of carrying out a complete fuel cell integration for BE.

We believe the BE-related headwind is over now, and going ahead, strong order flows and agreements by BE should boost the business scenario for MTAR. Moreover, the diversification across segments by the company is expected to result in healthy revenue growth going ahead.

We estimate MTAR Tech to deliver a CAGR of 28%/42%/58% in revenue/ Ebitda/adjusted PAT over FY24-27 on the back of strong order inflows. We retain our Buy rating on the stock with a target price of Rs 2,100 (34 times Dec’26E EPS).

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