MTAR Technologies Shares Fall And Freeze Again As Selling Pressure Continues

Mumbai, July 21: Shares of MTAR Technologies continued their sharp correction on Tuesday, hitting the 5% lower circuit for the fourth consecutive trading session as sustained selling pressure dragged the multibagger stock down nearly 35% over the past month. The latest decline came amid weakness in global AI-linked stocks and a sharp fall in US-based Bloom Energy, a key company associated with MTAR’s AI infrastructure investment theme.  

Stock Falls 35% In 30 Days 

MTAR Technologies shares have been locked at the 5% lower circuit every session since July 16, extending the stock’s recent losing streak. The sharp correction has erased a significant portion of the gains accumulated earlier this year, with the stock having rallied 123% over the previous six months as investor interest in AI-related infrastructure stocks surged.  

The latest selling pressure was triggered in part by weakness in Bloom Energy, whose shares have declined nearly 38% over the past month. The broader selloff in AI-linked stocks across global markets, including the US, South Korea and Taiwan, has also weighed on sentiment towards companies perceived to be beneficiaries of the AI infrastructure boom.  

Bloom Energy Link Weighs On Sentiment 

MTAR Technologies had emerged as a major beneficiary of the AI infrastructure theme, with investors expecting the precision engineering company to gain from rising demand for equipment and components used in data centres. Its association with Bloom Energy, which supplies fuel-cell solutions for AI data centres, had further strengthened the investment narrative around the stock. 

The stock fell and froze as AI concerns took over again. Source: NSE 

Bloom Energy’s fuel cells are expected to be deployed in a proposed 1.8 GW data centre project in Cheyenne, Wyoming. However, the sharp decline in Bloom Energy shares and the broader cooling in AI-related stocks have prompted investors to reassess valuations and near-term expectations for the sector.  

Analysts See Long-Term Potential 

Despite the sharp correction, analysts remain positive on MTAR Technologies’ long-term fundamentals. 

Brokers expect MTAR Technologies to report earnings per share of ₹100 in FY28, with earnings projected to grow at a compound annual growth rate of more than 50% between FY26 and FY28. Based on a price-to-earnings multiple of 50 times, they estimate a fair value of ₹5,000.  

The steep correction highlights the risks associated with high-momentum stocks that have rallied sharply on expectations of strong future growth. While MTAR Technologies’ long-term growth story remains intact in the eyes of some analysts, investors are likely to closely track global AI sentiment, Bloom Energy’s performance and the company’s earnings trajectory. 

Source

• https://www.nseindia.com/get-quote/equity/MTARTECH/Mtar-Technologies-Limited