MTAR Technologies shares fall 24% from record high; what should investors do?

Shares of MTAR Technologies Ltd have lost 24% from their record high in two months. MTAR Technologies shares, which hit a record high of Rs 2,920 on September 11, 2023, are down Rs 710 or 24.31% till date. The stock was trading at Rs 2210 in early deals today. It opened higher at Rs 2205 against the previous close of Rs 2203.05 on BSE. The market capitalisation of MTAR Technologies rose to Rs 6810.02 crore on BSE. A total of 727 shares of the firm changed hands amounting to a turnover of Rs 16.08 crore.

In terms of technicals, the relative strength index (RSI) of MTAR Technologies stock stands at 31.5, signaling it's trading neither in the overbought nor in the oversold zone. The stock has a beta of 0.2, indicating very low volatility in a year. MTAR Technologies stock is trading lower than the 10 day, 20 day, 30 day 50 day and 100 day but higher than 150 day and 200 day moving averages.

The stock has gained 44.76% in a year and risen 35.34% in 2023.

Anand Rathi Investment Services has assigned a target of Rs 2970 to the aerospace and defence stock.

“With a strong order book, new global aerospace and clean energy clients, and sustained growth from its major clients, MTAR Tech is poised to achieve its projected growth in FY24. The company’s working capital has been affected by delayed payments from a key customer and a decrease in payable days. However, the company is actively addressing this issue by reducing inventories and enhancing payment terms. We assign a BUY rating on the stock with a target price of Rs 2,970 per share,” said the brokerage.

Abhijeet from Tips2trades said, "MTAR Technologies is bearish on the Daily charts with strong resistance at Rs 2363. A daily close above this resistance could lead to target of Rs 2555 in the near term. Support will be at Rs 2192."

MTAR Technologies is a leading precision engineering solutions company engaged in the manufacture of mission critical components with close tolerances (5-10 microns). The company serves customers in the clean energy, nuclear, space and defence, sectors.

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