It has been raining IPO! And adding to the expression, another IPO is joining the long list of IPOs, the MTAR Technologies coming up with the one. Is MTAR Technologies IPO worth investing in?
Well! let’s get started with the basic details and know some of the facts related to it.
Considering the MTAR Technologies IPO review, it is going to launch on the 3rd of March with an issue size of 10,372,419 equity shares summing it to a whopping amount of ₹596.41 Cr, MTAR Technologies IPO is already grasping the attention of many investors.
The IPO comprises a fresh issue of 2,148,149 equity shares and an offer for sale of 8,224,270 equity shares, which totals upto ₹123 Cr and ₹472 Cr, respectively.
MTAR Technologies is a prominent name in the precision engineering industry. Serving some great clients like ISRO and DRDO, the company currently serves the energy, space, nuclear, and defense sectors.
MTAR Technologies has never failed in delivering world-class services and its contribution to the various Indian programs. These include the Indian space program, the Indian civilian nuclear power program, and many others.
Based in Hyderabad, this company has made sure to bag a lot of laurels. Since the very beginning, the company has shown constant growth in every aspect.
With their new IPO launching in the market, the one question that everyone is brainstorming is MTAR Technologies IPO worth investing in.
Let us try to solve this together.
Advantages of Investing in MTAR Technologies IPO
It feels great to be sure about anything that you want to do, and when it comes to investing, you should always double-check. Here are some of the great things about MTAR Technologies that can help you pick aside.
MTAR Technologies has been in business for a fairly long time now. Apart from this, it has been a part of some very essential programs.
It has created a niche in precision engineering which gives it an upper hand when it comes to the trust of the customers. It has worked in a plethora of segments and with a whole range of customers. This definitely is a feather in their cap.
With its diverse portfolio, it has expertise in dealing with complex products and impressive manufacturing capabilities. Convincing enough, right?
An Upright Slope of Finances
The one thing that every investor will keep an eye on before investing in an IPO is the growth and also the financial gains of the company.
The company has, without a doubt, reached great heights, and this is evident in its financial growth as well. The robust financial record is apparent from the fact that the financial gains for the last three fiscal years.
The company’s total income jumped from 160.54 crores in December2018 to 177.99 crores in December2020.
That’s quite a progress and an excellent reason and clears your ideas around is it worth investing in MTAR Technologies IPO?
Seven State of Arts
The functioning of the company takes place with the help of seven states of art manufacturing units. In addition to this, it also has an export-oriented unit (commonly referred to as EOU). The capability and functioning of every segment are tremendous and entirely satisfactory.
Some of the most reputed and respected names are a part of the client base of MTAR Technologies. These include DRDO, ISRO, NPCIL, etc.
Also, participation in the various programs works like icing on the cake.
Disadvantages of Investing in MTAR IPO
Unfortunately, with all the pros of the IPO, there are also some risks associated with it. It is good to consider them as well to know whether MTAR Technologies IPO worth investing in. Some of the major concerns are listed below.
Dependence on Few Clients
The one thing that pulls the company back is the fewer number of clients. The revenue of MTAR Technologies majorly depends on clients like DRDO, ISRO, etc.
This can be harmful in a situation where there is a sudden change in government policies.
The fallback of even a single client can result in a significant loss.
Lack of Agreements with Customers
MTAR Technologies does not have long-term agreements with its clients. It depends majorly on the purchase orders to decide the volume and many other factors related to the sale of that particular product.
Any customer can back out and stop sourcing from MTAR, resulting in the company facing financial adversity.
The Final Verdict
All the discussion boils down to one single question, is MTAR Technologies IPO worth investing in?
The company is a successful one and an epitome of excellence in its field. The issue size of the company offers a whopping price. The clients and the inclusion of some great names give the IPO an upper hand.
There are some risk factors associated with the IPO, as the irregular or sudden change in government policies can affect the company’s clients and ultimately the revenue.
So, if you are willing to invest in the MTAR Technologies IPO, then weigh it from every perspective and enjoy the breeze of significant profits.
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