MTAR Technologies Limited

Industrials — Specialty Industrial Machinery · NSE

₹7,044.00−₹244.50 (−3.35%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by small-cap size, which brings sharper price swings, a beta above 1.3, so it swings harder than the index, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

The 60-second version of MTAR Technologies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

MTAR Technologies Limited manufactures and sells high precision, heavy equipment, components, and machines in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees1,321

Annual revenue₹865 Cr

How does it make money?

Turns over ₹865 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 1,321 employees supports ₹65.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹65.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 14.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE17.1%

What is the outlook?

5 analysts covering the stock expect revenue to grow about 78.2% and earnings to grow about 114.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+78.2%

Est. earnings growth+114.7%

Analysts5

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +54% while net margin moved -41% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+54%

Margin effect-41%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 162.3x is demanding — it needs sustained high growth to justify
✗ P/E is 79% above its own historical median of 90.9x — expensive by its own standards
✗ P/B of 26.33x is a steep premium to book

Quality vs. Valuation

Company Quality

60/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

23/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

162.3x

3Y Median

90.9x

40 monthly readings · mean 139.1x · range 50.1x–458.4x

Sector Median

66.2x

median of 4 sector peers

⚠️Current valuation is approximately 79% above its 3y median of 90.9x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 145% above the peer median of 66.2x.

vs. its own history

Expensive

90.9x median over 40 months · +79%

vs. sector peers

Expensive

66.2x median of 4 peers · +145%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

116.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 16.7% to 11.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 21.0% to 14.8% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 163% over 3 years, from ₹143 Cr to ₹377 Cr.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 8.0 points, from 29.8% to 21.8%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹63 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 29.8% to 21.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 79% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 16.7% to 11.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 12% a year✓ 15.4% CAGR
Latest reported year was 130.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 21.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹63 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 14.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹21,667 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

162.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

26.33x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹43.39

Profitable

Profitable on a per-share basis

ROE

11.4%

Moderate

Moderate capital efficiency

ROCE

14.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.46x

Low

Conservative leverage

Revenue Growth (YoY)

130.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

363.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹63 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

41.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

20.9%

Good

Healthy core-business profitability

Net Margin

12.4%

Good

Strong bottom-line conversion

Current Ratio

1.55

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.39

High swing

Swings more than the market in both directions

52W Range Position

75%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

7451.0 / 7230.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

53.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹563 Cr	₹573 Cr	₹665 Cr	₹865 Cr	+15.4%
EBITDA	₹168 Cr	₹112 Cr	₹120 Cr	₹189 Cr	+4.0%
EBITDA Margin	29.8%	19.6%	18.0%	21.8%	—
PAT (Net Profit)	₹103 Cr	₹56 Cr	₹53 Cr	₹94 Cr	-3.1%
EPS	₹33.62	₹18.24	₹17.19	₹30.57	-3.1%
ROE	16.7%	8.3%	7.3%	11.4%	—
ROCE	21.0%	11.5%	10.6%	14.8%	—
Total Debt	₹143 Cr	₹191 Cr	₹177 Cr	₹377 Cr	+38.0%
Free Cash Flow	-₹101 Cr	-₹37 Cr	₹1 Cr	₹63 Cr	—

🟢 Revenue has grown at 15.4% a year over 3 years.

🟢 EBITDA has grown at 4.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 29.8% to 21.8% over 3 years (-8.0 pts).

🔴 PAT (Net Profit) has shrunk at 3.1% a year over 3 years.

🔴 EPS has shrunk at 3.1% a year over 3 years.

🔴 ROE has fallen from 16.7% to 11.4% over 3 years (-5.2 pts).

🔴 ROCE has fallen from 21.0% to 14.8% over 3 years (-6.2 pts).

🔴 Total Debt has grown at 38.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹101 Cr to ₹63 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,743 Cr

Total Liabilities

₹921 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹197 Cr

Capex

-₹134 Cr

Shareholding (proxy)

Institutional Holding

33.7%

Insider Holding

29.2%

Corporate Actions

Ex-Dividend Date

21 Feb 2022

Analyst Consensus

Recommendations

5 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹9,200

+30.6% vs CMP

Target Range

₹8,000 – ₹10,240

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

4 mixed2 general

MTAR Technologies Share Price Rise: Sector and Peer View

Univest, 28 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Smallcap stocks under pressure; Sterlite, MTAR, HFCL, Netweb slide 5%

Business Standard, 15 Oct

MTAR Technologies Limited Just Recorded A 11% Revenue Beat: Here's What Analysts Think

Simply Wall Street, 02 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

MTAR Technologies - 10 stocks held by 100+ MF schemes in September rally up to 205% in CY26; 6 turn multibaggers

The Economic Times, 16 Oct

Mtar Tech shares gain as firm expects to beat its 80% revenue growth guidance; stock up 40% in last 1...

Moneycontrol.com, 26 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

MTARTECH Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑