The share price of MTAR Technologies Ltd fell by 1.88% on the BSE today, August 28, 2023, to close at Rs 2,220.60. The stock was trading in the range of Rs 2,220.60 to Rs 2,261.45 during the day.
The decline in the share price of MTAR Technologies came after the company announced its financial results for the quarter ended June 2023. The company’s net profit fell by 20% to Rs 60.7 crore in the quarter, from Rs 75.9 crore in the same quarter last year. The company’s revenue also fell by 10% to Rs 366.5 crore in the quarter, from Rs 407.6 crore in the same quarter last year.
The company attributed the decline in its financial performance to the ongoing global semiconductor shortage. The company said that the shortage had affected its production and sales.
Despite the decline in its financial performance, MTAR Technologies has a strong order book. The company’s order book stood at Rs 1,200 crore as of June 2023.
The brokerage firm Motilal Oswal Securities has a “buy” rating on the stock with a target price of Rs 2,500. The brokerage firm said that the company is well-positioned to benefit from the growth of the semiconductor industry.
The decline in the share price of MTAR Technologies is a reminder of the risks associated with investing in cyclical stocks. The semiconductor industry is cyclical and is susceptible to changes in the global economy. Investors should carefully evaluate the risks before investing in MTAR Technologies or any other cyclical stock.
Here are some of the key takeaways from the news:
- MTAR Technologies share price fell by 1.88% on the BSE today.
- The stock was trading in the range of Rs 2,220.60 to Rs 2,261.45 during the day.
- The decline in the share price came after the company announced its financial results for the quarter ended June 2023.
- The company’s net profit fell by 20% to Rs 60.7 crore in the quarter.
- The company’s revenue also fell by 10% to Rs 366.5 crore in the quarter.
- The company attributed the decline in its financial performance to the ongoing global semiconductor shortage.
- Despite the decline in its financial performance, MTAR Technologies has a strong order book.
- The brokerage firm Motilal Oswal Securities has a “buy” rating on the stock with a target price of Rs 2,500.
I hope this helps!