The MTAR Technologies IPO listing date is Monday, March 15, 2021. The equity share of MTAR Technologies Limited will list on BSE and NSE. The initial public offering received a strong response and was subscribed more than 200 times. Retail Investors who got the allotment are extremely excited and are expecting Bumper returns on listing date. HNIs and Fund Houses are looking forward to buying into MTAR Technologies as they are confident in the management and the business model of the company, according to some analysts.

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MTAR Technologies: Complex product manufacturing capability with healthy order book:

MTAR Technologies manufactures a wide range of critical engineered products and thus enjoys high entry barriers, increased customer dependency and long standing clients’ relationship. Infact, MTAR Technologies has been a sole supplier from India to USbased Bloom Energy (BE). Its revenue is well diversified: clean energy (49% of 9M FY21 sales), nuclear (27%), space and defence (21%) and others (3%). >50% of its revenue comes from the export market. Its order book is healthy at Rs 3.4 bn which is 1.6xFY20 revenues.

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MTAR Technologies: New product launches and Indigenization to aid growth:

MTAR Technologies is developing hydrogen boxes and electrolyzers to serve BE. Clean energy can be used in multiple sectors to generate power and is expected to grow at 15% CAGR and thus MTAR Technologies is in process to tap existing customers too. It is also building a sheet metal facility and plans to take up specialized fabrication jobs. India has 22 operational reactors and the Government has sanctioned 10 more which would double nuclear capacity to 11.5GW, thus presenting a huge opportunity for MTAR Technologies. Further indigenization in defence space opens a plethora of opportunities for MTAR Technologies given its experience.

MTAR Technologies Healthy Financials:

Over FY18-20, MTAR Technologies Revenue/EBITDA/PAT grew at a CAGR of 16%/35%/140% while EBITDA margins expanded 714bps to 27.1% due to rising export share (higher margin). In 9M FY21, Revenue/EBITDA/PAT grew 16%/22%/25% YoY, while EBITDA margin further improved to 29.9%. It has negligible debt on its books which post IPO will further reduce to zero. However it is working capital intensive (180 days) and its asset turnover stands at 0.8x, thus resulting in RoE of 14% (FY20).