Shares of MTAR Technologies Ltd., rose over 9% on Thursday with the stock trading Rs 7,290.54 intraday after the company on Thursday secured blanket purchase orders worth $238.76 million, or about Rs 2,278.96 crore, from an international entity, the company said in an exchange filing.
The company said the orders have been awarded as part of its regular business relationship with the customer. However, MTAR Technologies did not disclose the customer's identity, citing confidentiality obligations. The latest purchase orders are international in nature and form part of the company's ongoing business operations. MTAR Technologies said the order value represents the broad consideration for the contracts awarded.
Speaking to NDTV Profit, Parvat Srinivas Reddy, MD MTAR Technologies said, "The order is part of our normal course of business and whatever we are trying to do is the efforts of over last few years. There has been a remarkable increase in certain areas or revenues. Also, it is every vertical. We are working on whether it is aerospace and defence, nuclear energy, oil and gas moving forward, the absolute numbers are going phenomenally well and we are focusing on every vertical as equally as possible."
The company also clarified that its promoter group and associated group companies have no interest in the entity that awarded the orders. It further confirmed that the contracts do not qualify as related-party transactions under applicable regulatory norms. MTAR Technologies said the disclosure was made in line with regulatory requirements for listed companies.
MTAR Technologies on Tuesday announced its Q4 earnings with a consolidated net profit at Rs 44.2 crore, compared with Rs 13.7 crore in the year-ago period. "After guidance to 80%, this year we have strong H1 and even better H2 so that's a clear indication of way we are moving forward," shared Reddy.
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MTAR Technologies Ltd. Share Price Today
MTAR Technologies Ltd Share Price Today
The scrip rose as much as 9.68% to Rs 7,294.50 apiece intraday on Thursday at 9:48 a.m. This compares to a 0.43% rise in the NSE Nifty 50 Index.
It has risen 376.11% in the last 12 months and 199.83% year-to-date. Total traded volume so far in the day stood at 2.09 times its 30-day average. The relative strength index was at 57.59.
Out of seven analysts tracking the company, six maintain a 'buy' rating, one maintains a "hold", according to Bloomberg data. The average 12-month consensus price target of Rs 9003.50 implies an upside of 24.3%
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