Check Before You Invest : MTAR Technologies Ltd

Snapshot

Q.1 Which industry/sub-sector does MTAR Technologies Ltd belong to?

MTAR Technologies Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering segment.

Q.2 Is MTAR Technologies Ltd a good quality company?

MTAR Technologies Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is MTAR Technologies Ltd undervalued or overvalued?

MTAR Technologies Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is MTAR Technologies Ltd a good buy now?

MTAR Technologies Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of MTAR Technologies Ltd?

MTAR Technologies Ltd revenue growth is 16.5% for FY-2025, which is below its 5-year CAGR of 25.89%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of MTAR Technologies Ltd?

MTAR Technologies Ltd Return on capital employed is 10.66% for FY-2025, which is below its 5-year historical median of 16.02%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of MTAR Technologies Ltd?

MTAR Technologies Ltd Return on Asset is 5.05%, which is below its 5-year historical median of 9.27%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of MTAR Technologies Ltd?

MTAR Technologies Ltd Return on equity is 7.65% for FY-2025, which is below its 5-year historical median of 12.22%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of MTAR Technologies Ltd?

MTAR Technologies Ltd Cash conversion cycle is 230 days, above its 5-year historical median of 203 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.63	0.56
ROE	7.65	12.22
ROCE	10.66	16.02
Cash Conversion Cycle	230 days	203 days

Q.6 Gross Profit margin of MTAR Technologies Ltd?

MTAR Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.4% for FY-2025, which is below its 5-year median of 27.8%, indicating decreasing margins.

Q.7 Operating Profit Margin of MTAR Technologies Ltd?

MTAR Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.85% for FY-2025, which is below its 5-year median of 26.88% indicating decreasing margins.

Q.8 Net Profit Margin of MTAR Technologies Ltd?

MTAR Technologies Ltd Net Profit Margin is 7.97% for FY-2025, is below with its 5-year median of 18.15%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	15.4	27.8
Operating Profit Margin	17.85	26.88
Net Profit Margin	7.97	18.15

Q.9 Debt to Equity ratio of MTAR Technologies Ltd?

MTAR Technologies Ltd Debt-to-Equity ratio is 0.24, which is lower with the industry average of 0.41, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of MTAR Technologies Ltd?

MTAR Technologies Ltd Debt to cash flow from operations is 1.74, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of MTAR Technologies Ltd?

Promoters hold 30.44% of the MTAR Technologies Ltd, with 8.94% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of MTAR Technologies Ltd vs industry peers?

MTAR Technologies Ltd revenue CAGR is 25.89%, compared to the industry median CAGR of 11.42%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	16.5	11.4
Gross Profit Growth	8.3	16.2
Operating Profit Growth	8	16.8
Net Profit Growth	-3.6	29

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.63	0.71
ROE	7.65	8.26
ROCE	10.66	10.15
Cash Conversion Cycle (days)	229.75	99

Valuation & price assessment

Q.1 Stock return of MTAR Technologies Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 46.8% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	46.8%	49.4%	345%

Q.3 Valuation ratios of MTAR Technologies Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	295.57	85.26	29.85
Price to Book	24.65	8.97	2.38
Price to Sales	25.92	11.43	2.23
EV to EBITDA	128.62	42.95	15.78

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