MTAR Technologies develops and manufactures components for the defense, aerospace & nuclear sectors. It was incorporated in 1970 to serve the technical & engineering needs of the Indian government in the post embargo regime.
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Client Base:
The company has a renowned client base, including reputed players such as Bloom Energy Corporation, ISRO, NPCIL, and DRDL.
It has established relationship with its customers and has been receiving repeat orders from its clients.
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Financial Profile:
The company’s operating income (OI) witnessed a healthy growth in
9MFY22 YoY on the back of a growing order book and timely execution despite supply chain disruptions. The revenue growth is expected to remain robust in the medium term.
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Promoter experience:
The promoters and management team have diverse industry experience of about 20+ years. MTAR has had a long established relationship with most of its customers due to the high technical complexity and know-how of the industry.
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Revenue Classification:
MTAR has a diverse portfolio, catering to multiple segments like clean energy (50% of revenues), Space & Defence (21%) and nuclear (26%). Healthy unexecuted order book across these segments provides ample revenue visibility over the next 2 fiscals
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Focus:
There has been an increased focus on indigenization in defence, space and nuclear power sectors.
Strong new product pipeline of MTAR will support the company to further diversify its revenue profile and will be a key growth factor.
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Key challenges:
The company’s scale of operations remained moderate,
with revenues at Rs. 246.4 in FY2021. However, the revenue has improved significantly over the past few years and is expected
to grow at a healthy pace.
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Concentration risk:
The company has high customer concentration. It derived more than 50% of its revenues from a
single customer, Bloom Energy Corporation.
The concentration may reduce with the increase in order flow in other segments such as nuclear and space.
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High inventory Holding period:
The company’s operations are working capital intensive. MTAR witnessed increase in debtor and inventory days. Its inventory holding period is above 250 days, and the company’s target is to bring it down to less than 200 days in near term
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Shareholding
• Promoters : 50.26%
• FIIs : 6.19% up from 2.90%
• DIIs : 23.46%
• 20.10%
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Revenue :
Revenue grew at CAGR of 25% over last 5 fiscals through 2021 and is expected grow at over 25% in the medium term driven by healthy offtake from its key customer Bloom and healthy order book with customer such as NPCIL and ISRO
OPM levels maintained at 31-33%
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Some Flagship Projects:
• Engine supplier for Mars Orbiter Mission Spacecraft
• Intergral for the Chandrayaan 2 Mission
• Provided complex assemblies for Agni Missiles 🇮🇳
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MTAR is trading 45% below its All Time High. Do you think there is more downside to come?
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(2/20)
Crop Protection Market:
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(2/17)
Industry Backdrop:
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The industry is seeing huge traction in tier II & III cities.
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(2/19)
Soft Drinks Market:
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However, the industry is delivering better numbers since then.
PVR Ltd is the country’s largest & most premium multiplex company, with a diverse portfolio of premium
formats across the length & breadth of the country, under its belt.
PVR was est in 1995 as a 60:40 JV between Priya Exhibitors Pvt Ltd & Village Roadshow Ltd. In 1995, PVR took a single-screen cinema hall, Anupam, in Delhi on lease & converted it into a 4-screen multiplex & started operations in 1997 as the first multiplex in 🇮🇳