MTAR Technologies share price rises for the second consecutive session; Should you buy?
MTAR Technologies share price rose for the second consecutive trading session on Thursday after the company received Defence Industrial License to manufacture various mechanical and electrical subsystems for the defence industry on Wednesday. Mtar Tech stock gained nearly 5% on today's session. MTAR Tech share price today opened at intraday low of ₹2,331 apiece on BSE.
MTAR Technologies share price touched an intraday high of ₹2,424. In the last two sessions, Mtar Tech stock has gained about 8%. Rajesh Bhosale - Equity Technical and Derivative Analyst of Angel One said that Mtar Tech stock is in strong uptrend, and any minor dip is getting bought into.
"This week as well, we are seeing positive traction. Previous high is 2,559, which is likely to be tested in coming weeks with bullish gap left around 2,300 to act as support," added Bhosale. Also Read: Sula Vineyards share price fall over 4% amid reports of block deal According to the company's exchange filing, the licence will make it simpler to conduct business with international MNCs on an array of defence projects.
"The license will enable the company to be partner with foreign MNCs and cater to both Domestic & Export markets by taking up projects under Buy (Indian), ‘Buy & Make (Indian)’ & ‘Make’ categories of acquisition, thereby increasing the share of Defence in our revenues," said the company in its filing on Wednesday. Brokerage house, JM Financial in its recent report has maintained a 'buy' rating for the stock with a target price of ₹2,770, and sees a potential upside of 24.1% for the stock. In its analysis, the brokerage stated that MTAR has a specialised business model supported by its decades of demonstrated engineering expertise and long-standing
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