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Last Updated on: 18 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 543270 | NSE: MTARTECH

MTAR Technologies Ltd: Share Price Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 18, 2024, 8:05 pm

Market Cap 4,780 Cr.
Current Price 1,556
High / Low 2,345/1,495
Stock P/E123
Book Value 228
Dividend Yield0.00 %
ROCE11.4 %
ROE8.37 %
Face Value 10.0
PEG Ratio-37.34

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for MTAR Technologies Ltd

Competitors of MTAR Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
MTAR Technologies Ltd 4,780 Cr. 1,556 2,345/1,495123 2280.00 %11.4 %8.37 % 10.0
DCX Systems Ltd 3,645 Cr. 327 452/23569.4 1020.00 %9.27 %8.08 % 2.00
Data Patterns (India) Ltd 14,135 Cr. 2,525 3,655/1,75176.4 2410.26 %19.7 %14.3 % 2.00
Paras Defence and Space Technologies Ltd 4,261 Cr. 1,057 1,593/60986.3 1220.00 %11.4 %7.96 % 10.0
Zen Technologies Ltd 21,538 Cr. 2,381 2,505/688106 1730.04 %47.2 %33.0 % 1.00
Industry Average54,499.42 Cr1,407.0873.33151.000.29%22.03%16.34%4.92

All Competitor Stocks of MTAR Technologies Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales91789991126160196152167118143128190
Expenses625571669111514811913095125112154
Operating Profit29232825354549343624181637
OPM %32%29%28%28%28%28%25%22%22%20%13%13%19%
Other Income3124565411112
Interest1232346656655
Depreciation4444455566668
Profit before tax271924223342432726137625
Tax %30%29%17%27%25%25%28%26%20%19%32%28%26%
Net Profit191320162532312021115519
EPS in Rs6.204.336.445.348.1910.319.996.446.773.431.651.486.11

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales951058181101157184214246322573580580
Expenses76867971113125130156163228419468485
Operating Profit2019211-12325458839415411295
OPM %21%18%2%13%-12%20%29%27%34%29%27%19%16%
Other Income12311144192063
Interest9987544577142221
Depreciation9105551111121314182325
Profit before tax23-7-1-2217424665821417352
Tax %80%37%-36%-133%-30%68%6%31%29%26%26%23%
Net Profit02-50-155393146611045639
EPS in Rs0.120.64-1.640.06-5.341.9213.8911.7014.9819.7933.8418.2912.67
Dividend Payout %0%0%0%0%0%0%22%43%40%15%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-350.00%100.00%133.33%680.00%-20.51%48.39%32.61%70.49%-46.15%
Change in YoY Net Profit Growth (%)0.00%450.00%33.33%546.67%-700.51%68.90%-15.78%37.88%-116.65%

MTAR Technologies Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2014-2015 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:19%
5 Years:26%
3 Years:33%
TTM:-14%
Compounded Profit Growth
10 Years:41%
5 Years:7%
3 Years:6%
TTM:-62%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:-9%
1 Year:-30%
Return on Equity
10 Years:10%
5 Years:13%
3 Years:13%
Last Year:8%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital28282828282828273131313131
Reserves207185180181166177207198446489590646670
Borrowings59444926292029291796143190184
Other Liabilities987348387156419293112299139162
Total Liabilities3923303062732942813053465867281,0631,0061,046
Fixed Assets159151145146148152162155167196282332336
CWIP8788826121144636880
Investments2500000000623477
Other Assets199171152119138127137179409425683600623
Total Assets3923303062732942813053465867281,0631,0061,046

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1442569-30955
Cash from Investing Activity +-1-33-12-22-145-88-54
Cash from Financing Activity +-14-7-41180543225
Net Cash Flow-123167-121-4727

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-39.00-25.00-47.00-15.00-41.0012.0025.0029.0066.00-2.0011.00-78.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days6056718814011410010511415413292
Inventory Days269240382467535524421
Days Payable873515515817929685
Cash Conversion Cycle60567188140296305332423510360428
Working Capital Days367300418331177132114109190270230253
ROCE %4%4%0%2%-7%10%18%19%19%16%22%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters50.25%50.26%47.47%47.18%47.18%46.63%39.14%39.14%37.26%37.26%36.42%36.42%
FIIs2.90%6.19%2.30%3.18%3.79%2.51%4.52%8.81%11.02%10.57%7.74%7.81%
DIIs23.81%23.46%27.26%27.74%28.31%27.57%28.02%24.06%18.97%18.07%15.96%17.28%
Public23.04%20.10%22.98%21.90%20.72%23.28%28.32%27.98%32.76%34.10%39.88%38.49%
No. of Shareholders1,26,5561,60,5231,74,3181,84,1071,84,1342,05,4302,11,2272,75,1683,12,4623,13,0193,35,0683,17,125

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)18.2433.6219.7916.9911.11
Diluted EPS (Rs.)18.2433.6219.7916.9911.11
Cash EPS (Rs.)25.7739.6924.4419.0616.21
Book Value[Excl.RevalReserv]/Share (Rs.)219.88201.61168.97155.0084.11
Book Value[Incl.RevalReserv]/Share (Rs.)219.88201.61168.97155.0084.11
Revenue From Operations / Share (Rs.)188.81186.53104.6980.1279.89
PBDIT / Share (Rs.)38.5356.3933.5427.4323.29
PBIT / Share (Rs.)31.0050.3228.8923.3518.79
PBT / Share (Rs.)23.7445.5926.7321.0717.02
Net Profit / Share (Rs.)18.2433.6219.7914.9811.70
NP After MI And SOA / Share (Rs.)18.2433.6219.7914.9811.70
PBDIT Margin (%)20.4030.2332.0434.2429.15
PBIT Margin (%)16.4126.9727.5929.1423.52
PBT Margin (%)12.5724.4325.5326.3021.29
Net Profit Margin (%)9.6618.0218.9018.6914.65
NP After MI And SOA Margin (%)9.6618.0218.9018.6914.65
Return on Networth / Equity (%)8.2916.6711.719.6613.91
Return on Capital Employeed (%)11.9221.4415.8014.4521.60
Return On Assets (%)5.569.728.367.859.04
Long Term Debt / Equity (X)0.140.120.040.010.00
Total Debt / Equity (X)0.280.230.180.020.12
Asset Turnover Ratio (%)0.560.640.490.520.00
Current Ratio (X)2.722.042.804.461.51
Quick Ratio (X)1.050.901.773.310.84
Inventory Turnover Ratio (X)0.861.131.151.140.00
Dividend Payout Ratio (NP) (%)0.000.0030.3117.4245.04
Dividend Payout Ratio (CP) (%)0.000.0024.5413.6932.53
Earning Retention Ratio (%)0.000.0069.6982.5854.96
Cash Earning Retention Ratio (%)0.000.0075.4686.3167.47
Interest Coverage Ratio (X)5.3111.9115.5212.0513.11
Interest Coverage Ratio (Post Tax) (X)3.528.1010.167.587.59
Enterprise Value (Cr.)5318.824975.905406.562970.480.00
EV / Net Operating Revenue (X)9.168.6716.7912.050.00
EV / EBITDA (X)44.8828.6952.4035.200.00
MarketCap / Net Operating Revenue (X)8.928.4816.7012.780.00
Retention Ratios (%)0.000.0069.6882.5754.95
Price / BV (X)7.667.8410.356.610.00
Price / Net Operating Revenue (X)8.928.4816.7012.780.00
EarningsYield0.010.020.010.010.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of MTAR Technologies Ltd as of December 18, 2024 is: 2,394.23

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 18, 2024, MTAR Technologies Ltd is Undervalued by 53.87% compared to the current share price 1,556.00

Intrinsic Value of MTAR Technologies Ltd as of December 18, 2024 is: 2,315.36

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 18, 2024, MTAR Technologies Ltd is Undervalued by 48.80% compared to the current share price 1,556.00

Last 5 Year EPS CAGR: -3.29%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (334.00 cr) compared to borrowings (70.38 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (255.31 cr) and profit (37.92 cr) over the years.
  1. The stock has a low average ROCE of 9.83%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 240.92, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 255.75, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in MTAR Technologies Ltd:
    1. Net Profit Margin: 9.66%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 11.92% (Industry Average ROCE: 22.03%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 8.29% (Industry Average ROE: 16.34%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3.52
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.05
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 123 (Industry average Stock P/E: 73.33)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.28
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

MTAR Technologies Ltd. is a Public Limited Listed company incorporated on 11/11/1999 and has its registered office in the State of Telangana, India. Company’s Corporate Identification Number(CIN) is L72200TG1999PLC032836 and registration number is 032836. Currently Company is involved in the business activities of Manufacture of parts and accessories of the aircraft and spacecraft of. Company’s Total Operating Revenue is Rs. 322.01 Cr. and Equity Capital is Rs. 30.76 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Aerospace & Defense18, Technocrats Industrial Estate, Hyderabad Telangana 500037info@mtar.in
http://www.mtar.in
Management
NamePosition Held
Mr. Subbu Venkata Rama BeharaChairman & Ind.Director
Mr. Parvat Srinivas ReddyManaging Director
Mr. Praveen Kumar Reddy AkepatiExecutive Director
Mr. Anushman Reddy MittaExecutive Director
Mr. Venkatasatishkumar Reddy GangapatnamNon Executive Director
Mr. Gnana Sekaran VenkatasamyIndependent Director
Mr. Udaymitra Chandrakant MuktibodhIndependent Director
Ms. Ameeta ChatterjeeIndependent Director
Mr. Krishna Kumar AravamudanIndependent Director

FAQ

What is the latest intrinsic value of MTAR Technologies Ltd?

The latest intrinsic value of MTAR Technologies Ltd as on 18 December 2024 is ₹2394.23, which is 53.87% higher than the current market price of ₹1,556.00. The stock has a market capitalization of 4,780 Cr. and recorded a high/low of ₹2,345/1,495 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹670 Cr and total liabilities of ₹1,046 Cr.

What is the Market Cap of MTAR Technologies Ltd?

The Market Cap of MTAR Technologies Ltd is 4,780 Cr..

What is the current Stock Price of MTAR Technologies Ltd as on 18 December 2024?

The current stock price of MTAR Technologies Ltd as on 18 December 2024 is 1,556.

What is the High / Low of MTAR Technologies Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of MTAR Technologies Ltd stocks is 2,345/1,495.

What is the Stock P/E of MTAR Technologies Ltd?

The Stock P/E of MTAR Technologies Ltd is 123.

What is the Book Value of MTAR Technologies Ltd?

The Book Value of MTAR Technologies Ltd is 228.

What is the Dividend Yield of MTAR Technologies Ltd?

The Dividend Yield of MTAR Technologies Ltd is 0.00 %.

What is the ROCE of MTAR Technologies Ltd?

The ROCE of MTAR Technologies Ltd is 11.4 %.

What is the ROE of MTAR Technologies Ltd?

The ROE of MTAR Technologies Ltd is 8.37 %.

What is the Face Value of MTAR Technologies Ltd?

The Face Value of MTAR Technologies Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in MTAR Technologies Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE