MTAR Technologies Ltd – Rocket Science Valuation at 71x P/E, But Still Dependent on One Customer
1. At a Glance
MTAR is that Hyderabad uncle who makes nuclear parts, space engines, and defence gear — yet 70% of his pocket money comes from one foreign friend, Bloom Energy. With a ₹4,300 crore market cap, P/E of 71, and promoter holding down to just 31.7%, this stock feels like ISRO rocket science priced like Tesla hype.
2. Introduction
Founded in 1970, MTAR’s origin story reads like a Cold War thriller: “Post-embargo India needs indigenous tech, three Reddys rise to the occasion.” Fast forward to today, MTAR builds everything from cryogenic engines for ISRO to nuclear reactor fuel machining heads.
And yet, the stock behaves like a moody startup — revenue growth solid, but profits inconsistent, and return ratios as thin as dosa batter spread on a tawa. Promoters keep selling, FIIs keep nibbling, and the market keeps paying 70+ P/E because, well, “defence + nuclear + space = patriotic multibagger.”
Question: If a company supplies ISRO rockets and nuclear power parts, should it not be more profitable than a local steel reroller?
3. Business Model – WTF Do They Even Do?
MTAR makes “mission-critical” components. Translation: if their parts fail, the whole rocket/ reactor/ submarine fails.
Exports = 79%. Domestic = 21%. This is a Hyderabad company earning in dollars, but depending heavily on Bloom Energy (70% of revenue). One customer sneezes, MTAR catches pneumonia.
4. Financials Overview
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹157 Cr
₹128 Cr
₹183 Cr
+22.1%
-14.2%
EBITDA
₹28 Cr
₹16 Cr
₹34 Cr
+75.0%
-17.6%
PAT
₹11 Cr
₹5 Cr
₹14 Cr
+120%
-21.4%
EPS (₹)
3.65
1.48
4.62
+147%
-21.0%
Commentary: Growth YoY looks like PSLV launch. QoQ looks like Chandrayaan crash test. Annualised EPS ~₹15, but CMP is ₹1,408 → P/E shoots to ~94x.
