MTAR Technologies Ltd Stock Analysis

MTAR Technologies is a leading precision engineering solutions company engaged in the manufacture of mission critical precision components with close tolerances (5-10 microns), and in critical assemblies, to serve projects of high national importance, through its precision machining, assembly, testing, quality control, and specialized fabrication competencies, some of which have been indigenously developed and manufactured. It primarily serves customers in the clean energy, nuclear and space and defence, sectors.

Since inception, it has strived to grow continually, contributing to the Indian civilian nuclear power programme, Indian space programme, Indian defence and aerospace sector, as well as to the global clean energy sector and the global defence and aerospace sector. Over the years, it has also developed import substitutes such as ball screws and water lubricated bearings that are specialized and used in the sectors it caters to. The engineering capability of the company, evolved over decades, has enabled it to consistently offer quality complex precision manufactured components and assemblies, within stipulated timelines and at reasonable cost in most cases, allowing it to forge a robust relationship with its customers.

The company currently operates through seven manufacturing facilities, including an export-oriented unit (EOU). These manufacturing facilities, each of which is situated in Hyderabad, Telangana, employ advanced equipment to undertake precision machining, assembly, testing and quality control, specialized fabrication, brazing and heat treatment, and other specialized processes, leading to the company being a one-stop solutions company for its customers. Over the years, it has made investments in processes, infrastructure and systems, and in specialized training to its technical team to become a leading player in nuclear and space and defence sectors. It has also implemented various information technology solutions including for assisting in its designing and manufacturing operations, and enterprise resource planning (ERP) solutions to integrate key areas of its operations.

Business area of the company

The company develops and manufactures a wide range of mission critical assemblies and precision components with close tolerances (5-10 microns), through its precision machining, assembly, and specialized fabrication facilities, for onward usage by its customers in the clean energy, nuclear, and space and defence sectors in India, and abroad.

Major events and milestones

• 1999: Incorporation of the company upon its conversion from a partnership firm to a private limited company.
• 1999: Commencement of manufacture of base shroud and fin assembly and pneumatic components for use in flight systems.
• 2003: Manufacture of control and safety red drive mechanism and diverse safety rod drive mechanism for IGCAR.
• 2008: Manufacture of grid plates for a 500 mega-watt prototype fast breeder reactor.
• 2012: Manufacture of power units for Bloom Energy.
• 2018: Commencement of defence exports by company.

Awards, accreditations or recognitions

• 2002: The Company was awarded the ‘Award for Excellence in Aerospace Indigenisation’ by the Society of Indian Aerospace Technologies and Industries for the outstanding contributions made by company towards the indigenisation of machining of critical components for ‘Kaveri’ engines.
• 2004: The company was awarded the ‘INS Industrial Excellence Award’ by the Indian Nuclear Society for the contributions made by the company in the nuclear field by undertaking critical development jobs.
• 2005: The company was awarded the ‘Defence Technology Absorption Award’ by the Defence Research and Development Organisation, in recognition of the outstanding contribution made by the Company in technology absorption in the area of Agni missiles.
• 2018: The company was awarded the ‘Best Quality Supplier Award’ by the helicopter division of Hindustan Aeronautics Limited, at the Business Partners Quality Meet, 2018.