MTAR Applied sciences: MTAR Tech good points 88% on itemizing day
The corporate raised Rs 596 crore by way of the IPO. It closed its provide on March 5, the difficulty having been subscribed 200.8 instances.
Analysts mentioned that whereas there isn’t a comparable peer, the excellent itemizing doesn’t go away a lot room for buyers shopping for the inventory at this value. “At Rs 1,100, I might suggest reserving revenue. At 59 instances PE, the worth shouldn’t be justified … The corporate is doing properly, however someplace the valuation needs to be sustainable,” mentioned Geetanjali Kedia, analyst senior at SPTulsian.com.
Future returns may not be at this fee, Kedia mentioned.
Previous to the IPO, brokerage corporations Prabhudas Lilladher, Angel Broking and ICICIdirect had advisable subscribing to the present.
“We consider that MTAR’s previous expertise in supplying merchandise, its means to fulfill clients’ particular technical necessities, status for the standard and security traits of their merchandise, good monetary power and value competitiveness will assist. the corporate to leverage its operational effectivity within the years to return, ”Prabhudas Lilladher mentioned in his pre-IPO be aware.