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MTAR Technologies Share Price Registers Sharpest Fall Since May; Here’s Why

Written by: Team Angel OneUpdated on: Feb 17, 2025, 4:13 PM IST
MTAR Technologies' share price fell 7%, marking its sharpest drop since May 2024, despite strong Q3FY25 results. Promoter share pledge concerns weigh on sentiment.
MTAR Technologies Share Price Registers Sharpest Fall Since May; Here’s Why
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MTAR Technologies, a leading precision engineering firm serving the defence, space, nuclear, and clean energy sectors, saw its share price hit a fresh 52-week high of ₹1,226.20 on the NSE on February 17, 2025. However, by 2:19 PM, the stock had dropped 7%, registering its steepest single-day fall since May 2024.

Promoter Share Pledge Raises Concerns

The decline in MTAR Technologies’ share price coincides with a disclosure to the stock exchanges regarding an encumbrance of 60,000 equity shares by Mrs. Kavitha Reddy Gangapatnam, a member of the company’s promoter group. While pledging shares does not necessarily indicate financial distress, it can sometimes be perceived as a sign of liquidity pressure, leading to negative investor sentiment.

Q3FY25 Performance 

MTAR Technologies reported financial results for the December quarter of FY25, with net profit surging 52.9% year-on-year to ₹15.9 crore, compared to ₹10.4 crore in Q3FY24. The growth in profitability was driven by strong revenue expansion and efficient order execution.

  • Revenue Growth: The company’s revenue jumped 47.3% YoY to ₹174.4 crore, up from ₹118.4 crore in the same period last year.
  • Operational Performance: EBITDA rose 38.5% to ₹33.1 crore, compared to ₹23.9 crore a year ago.
  • Margins Under Pressure: Despite higher revenue, EBITDA margin slipped to 19% from 20.2%, impacted by rising input costs and changes in the product mix.

Stock Price Performance of MTAR Technologies 

On a year-to-date (YTD) basis, MTAR Technologies’ stock has declined by 24.33% as of February 17, 2025. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Feb 17, 2025, 4:13 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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