This multibagger is more clean energy than defence play, says analyst; advises staggered buying

MTAR Technologies may be rallying alongside defence counters, but the sharper investment thesis lies elsewhere. In a stock-specific call on Business Today TV’s Daily Calls, B&K Securities Head of Research Rachit Khandelwal argued that the company should be viewed primarily as a clean energy play rather than a pure defence bet. The multibagger stock is up 225 per cent in 2026 so far.

His central argument was blunt: “All the time we try and put MTAR Technology in defence space. But the reality remains that it is more of a clean energy play.”

Not Just Another Defence Proxy

The distinction matters because MTAR has been swept into the broader enthusiasm around defence names, a pocket of the market that has remained in focus amid strong policy support and procurement momentum. But Khandelwal cautioned that the market may be oversimplifying the company’s business mix.

“If we really look into the business, only 12 per cent comes from aero defence,” he said, adding that the stock’s bigger story could unfold through the clean energy opportunity and the “kind of interest that we are seeing from the government side.”

Why the Market Narrative Could Shift

That framing potentially widens MTAR’s appeal beyond traders chasing defence momentum. In a market where sector labels often drive short-term flows, a re-rating linked to clean energy could give the stock a more durable narrative, especially if execution and earnings begin to reflect that shift.

The broader market backdrop also adds nuance. The show highlighted a weak headline market with the Nifty under pressure, while stock-specific action remained concentrated in select outperforming themes. In that environment, MTAR’s move suggests investors are still willing to back niche industrial and manufacturing stories with policy tailwinds.

Accumulation Strategy on Dips

For investors looking to enter after the sharp run-up, Khandelwal did not recommend chasing the stock aggressively. Instead, he advised a phased approach: “Start from today, but don’t put all your money in one go.”

His strategy is to accumulate in a staggered manner, adding 10-15% of the intended corpus on every Rs 115-200 decline. He identified Rs 6,800 as a strong support zone, suggesting investors can keep buying on declines until that level and then wait for fresh numbers and business improvement.

Levels to Watch

On the upside, the key trigger is a breakout above Rs 8,400. If that resistance is taken out, Khandelwal sees the possibility of a much steeper move, with targets in the Rs 10,400-Rs 11,300 range.