MTAR Technologies falls 5%, extends 4-day slide to 20%

Shares of MTAR Technologies extended their losing streak on Tuesday, falling another 5% to hit the lower circuit at Rs 5,457. The stock has now declined for four consecutive trading sessions, with each session ending at the 5% lower circuit. Over the past four trading days, it has lost nearly 20% of its value, while its one-month decline has widened to around 31%.

The continued selling pressure comes amid changes in the company's shareholding pattern for the June 2026 quarter. Promoter holding in MTAR Technologies declined to 29.36% from 30.44% in the previous quarter, while mutual fund ownership fell to 20.36% from 23.49%.

On the other hand, foreign institutional investors (FIIs) increased their stake in the company. FII holding rose to 24.80% in the June 2026 quarter from 17.31% in the previous quarter, signalling stronger participation by overseas investors despite the recent weakness in the stock.

Strong long-term returns despite recent correction

Despite the sharp decline in recent weeks, MTAR Technologies delivered strong long-term returns. The stock has surged nearly 268% over the past year, almost tripling investors' wealth during the period.

The stock's 52-week high stands at Rs 8,714, while its 52-week low is Rs 1,390.50, highlighting the wide trading range over the past year.

On the valuation front, MTAR Technologies continues to trade at a premium. The stock is valued at a price-to-earnings (P/E) ratio of 187.9 and a price-to-book (P/B) ratio of 21.48, indicating rich valuations relative to conventional benchmarks.

Technical indicators suggest near-term weakness may persist. The 14-day Relative Strength Index (RSI) stands at 32.4. While an RSI below 30 is generally considered oversold, the current reading indicates the stock is approaching that zone.

The stock is also trading below six of its eight key Simple Moving Averages (SMAs), signalling a bearish short-term trend.

Despite the recent correction, analyst sentiment remains positive. According to Trendlyne data, MTAR Technologies has a consensus target price implying 28.1% upside from current levels. The stock also carries a Strong Buy consensus recommendation from four analysts, suggesting continued confidence in its long-term prospects.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)