Thought leadership: Srinivas Reddy, MD at MTAR Tech talks about recent block deal in equity

Thought leadership: Srinivas Reddy, MD at MTAR Tech talks about recent block deal in equity

by 5paisa Research Team Last Updated: Mar 31, 2022, 04:28 PM IST

Promoters keep themselves from selling any shares.

MTAR Technologies recently witnessed a large block deal. Seemingly, 9.35% of equity or nearly 28.8 lakh shares have changed hands at an average price of Rs 1,798 per share. For the past five trading sessions, the stock has tumbled over 12.5%. Srinivas Reddy, MD at MTAR Tech expressed his views on the changes in shareholding.

He feels that there is no particular reason for the block deal and that the shareholders who had locked up investment for one year period might have sold the shares. Notably, there was no sell-off by the promoters per se, also he feels that promoters might not be the buyers of the sold stake.

Assumptions are being made that the sell-off might have come from Fabmohur which held an 8.41% equity stake in the company and that it could be a complete cleanup trade from Fabmohur along with some other investors. Reddy commented, “the good thing is that there has been a demand from the other investors to pick it up.” 

He also added the whole situation has nothing to do with the business operations. The rising commodity prices or higher input costs are not really impacting the margins of the business. The management has been pretty confident in achieving strong margins of 30-31 % which he feels they are well on track. The company is also looking forward to a growth of 30-35% in revenues. Going ahead in FY23, the company is looking convincing on performing even better with the revenue guidance of 50% growth, he added.

It was almost a year back when the company got listed on the exchanges. It had been since a tremendous rally in the stock as the stock doubled in a year. MTAR Technologies is a leading national player in the precision engineering industry.

 

Also read: High momentum stocks to watch for tomorrow!

SENSEX
54,326.39
1,534.16 (2.91%)
Nifty 50
16,266.15
456.75 (2.89%)
Nifty Bank
34,276.40
960.75 (2.88%)
Next Article

Open Free Demat Account

& get benefits worth 5100*

 
Resend OTP
Please Enter OTP
  • Have Promo code?
  • Use code ACT5100
Enter Promo code

By proceeding, you agree to the T&C.

SENSEX
54,326.39
1,534.16 (2.91%)
Nifty 50
16,266.15
456.75 (2.89%)
Nifty Bank
34,276.40
960.75 (2.88%)

Start Investing Now!

Open Free Demat Account in 5 mins

Enter Valid Mobile Number