MTAR Technologie (MTARTECH)
Fast GrowerFairStock Score: 25/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹7,056 |
| Market Cap | ₹21,703.97 Cr |
| P/E Ratio | 163.94 |
| ROCE | 10.51% |
| ROE | 9.31% |
| Dividend Yield | 0% |
| Profit Growth | 349.76% |
| Debt/Equity | 0.46 |
| Sales Growth | 134.37% |
| Promoter Holding | 30.6% |
| 52-Week Range | ₹1,483 — ₹8,714.95 |
| Sector | Aerospace & Defense |
| Book Value | ₹267.49 |
Strengths
- Strong momentum: sales growth of 59.30% and profit growth of 131.84%
- Low leverage with Debt/Equity of 0.25
- Piotroski F-Score of 7/9 indicates solid recent fundamentals
- Latest quarter net margin comes to about 12.6% on ₹278 Cr sales
- Aerospace & defense business offers high entry barriers
Concerns
- Extreme valuation: P/E of 172.50 and P/B of 25.09 leave no margin of safety
- ROE of 9.31% and ROCE of 10.51% are mediocre relative to the premium price
- Zero dividend yield means investors rely entirely on uncertain capital appreciation
- Promoter holding of 30.60% is moderate; 52-week range shows severe volatility
AI Analysis
MTAR Technologie is exactly the kind of business that gets a value investor's pulse racing—until I look at the price. Growth has been outstanding: sales up 59.30% and profits up 131.84%. Debt-to-equity is just 0.25, and the Piotroski F-Score of 7/9 confirms solid recent financial health. This is a real business in a high-entry-barrier sector. But Graham taught me to treat growth as an expectation, not a licence to overpay. At ₹5,343, the market cap is ₹11,710 Cr on a book value of ₹212.93—that is a P/B of 25.09. With ROE of just 9.31% and ROCE of 10.51%, the company is not currently earning a spectacular return on capital employed. The P/E of 172.50 means you are paying for many years of flawless execution. Even the PEG of 1.80 signals that the current growth rate is already largely priced in. The stock has swung from ₹1,390 to ₹8,714 in a year—this is not a stable, predictable compounder; it is a news-driven fast grower. The latest quarter's net profit of ₹35 Cr on sales of ₹278 Cr is respectable, but annualising that still leaves the valuation rich. Dividend yield is zero, so shareholders get no cash while waiting. Promoter holding of 30.60% is adequate but not compelling. My brain says this is a high-quality growth business. My discipline says wait for a price that offers margin of safety. The FairStock Score of 25/100 matches my caution: a wonderful company can be a terrible investment at the wrong price.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer