This post on MTAR Technologies Limited IPO attempts to bring out consolidated brokerage views , subscription information, Grey Market Premium (GMP) and anchor investor information where applicable. The information collated from various sources and reports in public domain can help investors to decide whether they should subscribe to MTAR Technologies Limited IPO or not.
Related Posts : MTAR Technologies Limited IPO Review
MTAR Technologies Limited IPO: Grey Market Premium etc.
- 03-03-21 GMP Rs. 430-440
Subscription: MTAR Technologies Limited IPO ( x times)
|Day / X times||QIB||NII||Retail||Total|
|Total Retail Applications||~ 2917634|
|Appl wise Retail||20.90 x|
Consolidated Brokerage Views on MTAR Technologies Limited IPO
Ajcon Global :”At the upper end of the price band of Rs. 575, the Company’s IPO is valued at P/E of 47x on 9MFY21 annualised EPS and at expected EV/EBITDA multiple of over 20x which is very expensive. The Company will always enjoy scarcity premium post listing as it operates in a specialized niche segment with strong entry barriers or moat it enjoys owing to its technological expertise built over the years with no major listed peers. We recommend “SUBSCRIBE for listing gains” to the issue due to the following factors: a) Company strongly positioned to tap opportunities in the clean energy, defence and space programmes.”
Capital Market : ” Score 46/100 ; On TTM basis, the sales was R 238.87 crore and the PAT was R 36.93 crore. On post issue equity, the EPS for FY2020 stood at Rs. 10.2 and TTM EPS was Rs. 12. The upper price of Rs. 575, discounts the FY20 and TTM EPS by about 56.4 times and 47.9 times respectively. The price to book-value stands at 4.8 times. The company has no comparable peers with exact product/business profile. But Hi-energy Batteries that cater to aerospace and defence and Sika Interplant that supplies to defence quotes at a PE of 30.4 times and 21.5 times of their FY20 EPS. Both Hi-energy Batteries and Sika Interplant quotes at a PE of 13.1 times and 16.2 times respectively of their TTM EPS. “
Choice Broking: “At higher price band of Rs. 575, MTAR is demanding a TTM P/E multiple of 56.5x (to its restated TTM EPS of Rs. 10.2). Considering the presence in the growth sectors like clean energy and space & defence sector and improving return ratios, we feel the demand valuation to be attractive. Thus we assign a “SUBSCRIBE” rating for the issue”
GEPL Capital: “Although the high degree of client concentration is a bit of an overhang, the level of stickiness and customer retention provides some comfort. The company has been supplying products such as liquid propulsion engines to ISRO for over three decades and critical components to DRDO for over four decades. We recommend a SUBSCRIBE rating to the issue.
HEM Securities: “Company is bringing the issue at p/e multiple of approx 49x at higher end of price band of Rs 574-575/share on FY20PAT basis. MTAR Technologies is a leading precision engineering solutions company & has offerings in the clean energy, nuclear and space and defence sectors where company manufacture critical and differentiated engineered products with a healthy mix of developmental and volume-based production, customized to meet the specific requirements of customers .Company’s financial performance looks strong with healthy balance sheet position. Company has wide product portfolio along with marquee customer base & robust order book which gives strong revenue visibility going forward. Hence we recommend investor to subscribe the issue for short & long term”
ICICIDirect: “Taking cognisance of the huge growth opportunities for MTAR and a high margin business that would aid flow of profitability to the bottomline, we recommend SUBSCRIBE rating on the issue. The company is available at a P/E of 56.5x (post issue basis) on FY20”
Motilal Oswal : “We like MTL given its complex/wide product portfolio, presence in niche space, client relationship and high entry barriers. The issue is valued at 47.3x FY21E P/E and 3.7x P/BV on an annualized and post issue basis. We believe MTL could benefit from the government impetus on the indigenization. Hence we recommend Subscribe for Long Term. Further given the current buoyant market and high interest for defence stocks, the issue could see listing gains as well.”
SMC: “Score 2/5 ; MTAR Technologies is also a key supplier of mission-critical assemblies and components to customers within space and defence sectors for their programs of national importance to ISRO and DRDO. Its order book as on 3QFY21 stood at Rs3.36bn, comprising Rs801mn from clean energy, Rs932mn from nuclear sector and Rs1.6bn from the space and defence sectors. The management is confident of healthy double-digit growth in subsequent fiscals on the back of healthy opportunity in clean energy and defence segment. However, the issue looks very expensive.”
SP Tulsiyan Website: “Niche presence serving growing industries supported by strong financial performance, makes this company an attractive bet in the small cap space.”
MORE WILL BE ADDED AS THEY BECOME AVAILABLE
Standard disclaimer: Standard disclaimer: I am not a SEBI registered analyst /investment adviser and above information is collated from various online sources and is for educational purpose only. Please visit individual brokerage sites to read the actual reports. Please do not make your investment decisions based on this info as it is not complete and exhaustive. Please do your own due diligence as stock market investments have high degree of inherent risk.