MTAR is a precision engineering company.Image Credit source: AI Generated
Often, only those companies are in the news in the stock market which are seen with big projects, big orders or heavy advertisements. But there are some companies which quietly handle the most sensitive missions of the country. They neither make bombs nor fire missiles, yet without them defense, space and nuclear projects cannot move forward. MTAR Technologies is one such company, which has attracted everyone’s attention by giving returns of about 70% to investors in the last one year.
In the last few years the company’s income has grown at the rate of about 28%. The share price has also increased by about 16% in a month. MTAR Technologies shares have given returns of about 70 percent to investors in the last year. The operating margin remains between 1520% and the debt on the company is also very low.
What is the real function of MTAR?
MTAR is a precision engineering company. It manufactures cryogenic fuel systems for ISRO, specialized actuators for defense platforms, highly sensitive components for Nuclear Power Corporation and high-quality components for global green energy companies like Bloom Energy. It is not easy to access these projects. Behind this lies years of testing, strict quality checks and trust built over a long period of time.
What does the company do?
MTAR Technologies does not make weapons, but makes critical parts in which a slight mistake can stop the entire mission. Here manufacturing is done at micron level. This means that if it is several times smaller than a human hair, it can cause great harm. This is the reason why MTAR has today become a reliable part of India’s space, defence, nuclear and green energy programs. The work of MTAR Technologies is very delicate. The biggest strength of MTAR is its accuracy. Sometimes it takes months to make a perfect part. This difficulty is also a kind of security shield for the company, because not everyone can do this level of engineering.
Increasing hold in defense sector
Earlier, a major part of MTAR’s earnings came from space and nuclear projects. Now the share of defense sector is gradually increasing. This change has not happened due to any one big announcement, but due to small but long-term orders being received continuously. In the defense sector, once a supplier is selected, it is not easy to change him. With time orders increase and the relationship becomes stronger.