MTAR Technologies shares rally nearly 227% in 2026 so far; brokerage sees further upside

Shares of MTAR Technologies Ltd rose 4.17 per cent to Rs 7,820 in Tuesday's fag-end trade. At this level, the multibagger stock has gained 226.77 per cent on a year-to-date (YTD) basis.

JM Financial has recently initiated coverage on MTAR Technologies with a 'BUY' rating and a 12-month target price of Rs 9,375, citing the company's capabilities across clean energy, civil nuclear power, aerospace and defence, space, and oil and gas (O&G).

The brokerage said MTAR is a precision engineering company with established expertise and longstanding relationships with marquee domestic and global customers, including US-based Bloom Energy.

According to JM Financial, MTAR had an order backlog of Rs 5,100 crore, which, along with structural growth opportunities, provides multi-year revenue visibility.

The brokerage expects MTAR Technologies to report a 66 per cent revenue CAGR and 92 per cent PAT CAGR over FY26-FY29E.

It also estimates that the company's return on equity (RoE) and return on capital employed (RoCE) could rise to 37 per cent and 33 per cent, respectively, by FY29E.

On valuations, JM Financial said MTAR is trading at 49 times FY28E earnings and 32 times FY29E earnings. It highlighted a PEG ratio of 0.46x over FY26-FY29E.

The brokerage values the company at 42 times FY29E earnings.

Bloom is a key customer for MTAR Technologies, with the US-based fuel-cell company contributing more than half of MTAR's revenue.

"As Bloom scales up its deployments globally to support its robust product order backlog of $6 billion, MTAR stands to benefit through higher volumes, incremental orders and deeper value-chain integration," JM Financial stated.