MTAR Tech shares gained nearly 3 percent in the morning trade on June 6 after Ahmedabad-based Plutus Wealth Management LLP picked up more than 4 percent stake in the company.
Plutus Wealth bought 13.15 lakh shares in the precision engineering company at an average price of Rs 1,880.02 per share through open market transactions on June 5.
Promoters were the sellers for some of those shares that changed hands. Usha Reddy Chigarapalli, Anitha Reddy Dwaram, and Kavitha Reddy Gangapatnam sold 11.2 lakh shares, or 3.64 percent shareholding in MTAR.
At 11am on Tuesday, the stock was quoting at Rs 1,942.75 on the NSE, higher by 2.49 percent from previous close. The stock is up 19 percent in 2023 so far, and has gained 90 percent since listing in March 2021.
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The company's robust March quarter results has also boosted investor sentiment. Its net profit increased 57 percent to Rs 31 crore against Rs 20 crore in the corresponding quarter of the last fiscal year. Revenue from operations doubled to Rs 196 crore from Rs 99 crore in Q4FY22.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at Rs 49 crore, up 77 percent compared from Rs 28 crore in the year-ago period.
“MTAR is poised to witness an accelerated growth with healthy margins over the coming years. We are looking forward to a 45-50 percent increase in our revenues in FY 24. Our NWC days shall be reduced further by end of FY 24. Positive industry growth in the sectors of our presence is expected to fuel our growth further,” MTAR Tech Managing Director and Promoter Parvat Srinivas Reddy had said.
As per Trendlyne, the consensus target price on the stock is Rs 2,450. This represents a 26 percent upside from current levels.
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