MTAR Technologies shares experienced a 3% decline on Monday following profit booking after a dramatic rally that pushed the stock to a record high of ₹8,449.50 on Friday. According to reports from The Economic Times, the defence and precision engineering company's shares had surged 24% in just three sessions before the recent pullback. The stock's remarkable performance represents a more than 155% rally from its March low of ₹3,309, demonstrating exceptional momentum in the defence sector. As per latest market updates, the decline occurred during broader market strength with Sensex surging over 900 points and Nifty trading above 23,950.
The recent rally was primarily driven by significant order announcements from the company. As reported by The Economic Times, MTAR Technologies secured an order worth ₹467.30 crore from an international company on Friday, with 50% of the order value scheduled for completion by March 20, 2027, and the remaining 50% expected by June 20, 2027. Earlier this month, the company announced another ₹2,279 crore order from an international client, contributing to the strong order book execution confidence. The company's robust order pipeline continues to support investor confidence despite the recent profit booking.
The company's management provided an optimistic outlook for FY27 during its earnings call, with the revenue growth guidance revised upward from 50% to more than 80% with a possible 5% variation. According to The Economic Times, the company expects margins of around 24% for the financial year, supported by strong confidence in executing the current order book. This revised guidance reflects the company's robust order pipeline and execution capabilities, positioning it well for continued growth in the defence sector.
Despite the recent decline, technical analysts maintain a bullish outlook on MTAR Technologies. As reported by The Economic Times, Sudeep Shah from SBI Securities noted that the shares continue to trade above key short and long-term moving averages, reflecting sustained bullish momentum. However, he highlighted that while the price has been making higher highs, the RSI has been forming lower highs, indicating a negative divergence. The stock currently has a market capitalisation of nearly ₹24,494 crore and has delivered impressive long-term returns, with shares jumping 379% in one year, 324% in three years, and 743% in five years. The recent pullback occurred during broader market strength, with Sensex surging over 900 points and Nifty trading above 23,950.
