Why is MTAR Technologie falling/rising?

Sep 05 2025 10:45 PM IST
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As of 05-Sep, MTAR Technologies Ltd's stock price is 1,407.60, down 0.8%, with a significant decline of 11.42% over the past month and 14.54% year-to-date. Despite strong fundamentals, the stock's long-term growth prospects are weak, contributing to its recent underperformance compared to market benchmarks.
As of 05-Sep, MTAR Technologies Ltd is experiencing a decline in its stock price, currently at 1,407.60, reflecting a decrease of 11.3 points or 0.8%. The stock has underperformed its sector by 0.39% today and has been on a downward trend for the last two days, with a total drop of 3.15% in that period. Over the past month, the stock has seen a significant decline of 11.42%, and its year-to-date performance shows a decrease of 14.54%. Despite some positive indicators such as a high return on capital employed (ROCE) of 15.98% and strong growth in net sales and profit after tax, the stock's long-term growth prospects appear weak, with an annual operating profit growth rate of only 7.61% over the last five years.

In the broader market context, the stock's short-term performance has been less favorable compared to the Sensex, which has gained 1.13% over the past week. Additionally, MTAR Technologies has underperformed the BSE500 over various time frames, including the last three years, one year, and three months. The company's high institutional holdings at 31.09% suggest that knowledgeable investors are closely monitoring its fundamentals, yet the stock's valuation remains high relative to its peers, contributing to its recent price decline. Overall, the combination of poor long-term growth, underperformance relative to benchmarks, and a recent streak of negative returns has led to the stock's current downward movement.
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