Views On MTAR IPO Book Profit By Jyoti Roy, Angel Broking
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Below are Views On MTAR IPO Book Profit By Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd
MTAR Technologies had a bumper opening given very strong demand for the IPO. There was very strong demand for the shares given that the company is uniquely positioned catering to marquee clients like ISRO, DRDO, NPCIL, DRDO, Bloom Energy and Rafael. At the higher end of the price band the company was offering its shares at a P/E multiple of 49.1xFY20 EPS which was reasonable considering the growth prospects for the company. However at CMP of Rs. 1115 the stock is trading at P/E multiples of 95.3xFY20 EPS which is expensive and captures near term growth potential thus leaving very little upside from current levels. Hence we would recommend book profits at current levels.
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