Thought leadership: Srinivas Reddy, MD at MTAR Tech talks about recent block deal in equity
5paisa Research Team
Last Updated: 12th December 2022 - 06:15 am
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!
Trending on 5paisa
Discover more of what matters to you.
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.
Want to Use 5paisa
Trading App?
