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MTAR Technologies rallies 11%; CRISIL upgraded the company ratings

October 8, 2021 02:14 PM

MTAR Technologies announced that rating agency CRISIL has upgraded the credit rating on the company's long-term bank facilities to A-/Stable from BBB+/Positive

Shares of MTAR Technologies hit an all-time high of Rs 1,638.85 as they rallied 11 per cent on the BSE in Friday’s intra-day trade on the back of heavy volumes. The stock surpassed its previous high of Rs 1,562 touched on July 16, 2021. MTAR Technologies had made its stock market debut on March 15, 2021. With today’s surge, the stock was trading 185 per cent higher against its issue price of Rs 575 per share.

At 01:25 pm, it was up 9 per cent at Rs 1,615, as compared to a 0.57 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped three-fold with a combined 1.2 million equity shares having changed hands on the NSE and BSE so far.

On Tuesday, October 5, 2021, MTAR Technologies announced that rating agency CRISIL has upgraded the credit rating on the company’s long-term bank facilities to A-/Stable from BBB+/Positive, and short-term bank facilities to A2+ from A2.

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Ratings continue to reflect the healthy business risk profile of MTAR marked by a strong order book, long-standing relationship with customers, strong export diversity and healthy operating profitability.

The ratings also benefit from robust financial profile bolstered by the recent IPO with healthy accruals and debt protection metrics. These strengths are partially offset by large working capital requirement, customer concentration risk and susceptibility to risks inherent in a tender-based business, CRISIL said.

MTAR Technologies is one of the leading precision engineering solutions companies engaged in the manufacture of mission-critical precision components with close tolerances (5- l0 microns), and in critical assemblies, to serve projects of high national importance, through their precision machining, assembly, testing, quality control, and specialized fabrication competencies, some of which have been indigenously developed and manufactured.

The company has been serving customers in the nuclear sector including the Nuclear power Corporation of India (NPCIL), Indian Space Research Organization (ISRO) and the Defence Research and Development Organization (DRDO) and has supplied a variety of mission-critical products.

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