The shares of defence major MTAR Technologies may have succumbed to profit booking, dropping 3% on Monday after a sharp surge saw the share price of the company rally 24% in just three sessions to hit a record high on Friday.
The shares of the company shot up to a 52-week high of Rs 8,449.50 apiece on Friday. This marked a more than 155% rally from its March low of Rs 3,309 apiece.
The recent rally in the share price was driven by multiple factors. On Friday, the company announced that it has secured an order worth Rs 467.30 crore from an international company. As per the execution timeline, 50% of the order value is scheduled to be completed by March 20, 2027, while the remaining 50% is expected to be executed by June 20, 2027.
Earlier this month, the company announced that it had received an order worth Rs 2,279 crore from an international company. The renewed buying also stems from robust FY27 growth guidance following Q4 earnings.
The company’s management during its earnings call had said that the outlook for the ongoing financial year 2027 remains highly positive, supported by strong confidence in the execution of the current order book. The company said it has revised its FY27 revenue growth guidance upward from 50% to more than 80%, with a possible variation of 5%, while expecting margins of around 24% for the year.
MTAR Tech share price
After falling around 3% to hit an intraday low of Rs 7,812 apiece on NSE in the morning trading hours, the stock recovered some losses and was trading only 1% lower at Rs 7,963 apiece, as seen at 9.50 am.
The shares of the company have jumped over 12% in one week, 55% in one month and 233% so far in 2026. In the longer term, the shares of the Hyderabad-based precision engineering company have jumped more than 379% in one year, 324% in three years and 743% in five years. The company currently has a market capitalisation of nearly Rs 24,494 crore.
Should you buy, sell or hold MTAR Tech shares?
The stock has been in a relentless uptrend since February, consistently making higher highs, with the price trading well above all key EMAs (20/50/100/200), with volume confirmation adding further credibility to the breakout, said Virat Jagad, Senior Technical Research Analyst at Bonanza Portfolio. He added that traders can consider buying on dips in the range of Rs 7,500-7,700, with a stop loss at Rs 7,150 on a closing basis, targeting Rs 8,650.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, also highlighted that MTAR Tech shares continue to trade above its key short and long-term moving averages, reflecting sustained bullish momentum. “However, while the price has been making higher highs, the RSI has been forming lower highs, indicating a negative divergence. This divergence is likely to trigger a reversal only if the stock breaks below the upward-sloping trendline support connecting the lows of 4,095 and 6,031 recorded on April 13 and May 13, respectively,” he said, adding that till the time the share price sustains above this trendline support, the broader trend is likely to remain bullish.
MTAR Tech’s chart has shifted from a breakout structure to a vertical extension, and that distinction matters, Harshal Dasani, Business Head at INVasset PMS, however, warned. He noted that the stock has seen a sharp multi-month move, with the recent rally taking it to fresh 52-week highs. “This is no longer a normal momentum move. It is a crowded strength trade where price has moved far ahead of its short-term averages, so fresh entries after such a run carry unfavourable risk-reward unless the stock cools off and builds a new base,” he added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
