MTAR Technologies Shares Hit Lower Circuit for 4th Straight Day, Stock Crashes 35% in a Month

MTAR Technologies Ltd shares remained under heavy selling pressure on July 21, hitting the 5% lower circuit for the fourth consecutive trading session. The stock has declined 35% over the past 30 days, tracking the sharp correction in Bloom Energy shares and weakness across global AI-related stocks.

Despite the steep correction, analysts believe the company's long-term fundamentals remain intact. However, they recommend waiting for better technical confirmation or more attractive valuation levels before considering fresh investments.

MTAR Technologies Extends Losing Streak

MTAR Technologies has been locked in the 5% lower circuit every trading session since July 16, reflecting sustained selling pressure.

The latest decline comes after Bloom Energy, one of MTAR Tech's key global business associates, lost nearly 38% over the past month, including an 8% decline overnight in the US market.

Weakness across AI-linked companies in the United States, South Korea and Taiwan has also weighed on investor sentiment toward stocks connected to AI infrastructure.

MTAR Technologies Share Price Snapshot

Particular	Details
Current Price	₹5,457
Day's Decline	5% (Lower Circuit)
30-Day Decline	35%
Consecutive Lower Circuits	4 Sessions

Bloom Energy Weakness Triggers Selling Pressure

Market participants have linked the recent correction in MTAR Technologies to the sharp fall in Bloom Energy, which has declined around 38% over the last month.

MTAR Tech is widely seen as a supplier associated with Bloom Energy's fuel cell ecosystem, particularly as the US company expands its presence in AI-focused data centre infrastructure.

The correction in global AI infrastructure stocks has therefore had a direct impact on investor sentiment towards MTAR Technologies.

Analysts Remain Positive on Long-Term Fundamentals

Despite the recent decline, analysts continue to maintain a constructive long-term outlook on the company.

According to Sunny Agrawal, Head of Fundamental Research at SBI Securities, the company could report FY28 earnings per share (EPS) of around ₹100, with earnings expected to grow at a CAGR of over 50% between FY26 and FY28.

Based on a 50x price-to-earnings multiple, SBI Securities estimates a fair value of around ₹5,000 for the stock. The brokerage believes investors may consider accumulating the stock on declines, with ₹4,000 offering a more favourable risk-reward profile for fresh entry.

Analyst Views

Brokerage / Analyst	View
SBI Securities	Buy on declines; fair value around ₹5,000
Suggested Entry	Around ₹4,000
FY28 EPS Estimate	Around ₹100

Technical Experts Advise Patience

Anand James, Chief Market Strategist at Geojit Investments, said investors should wait for a clear technical reversal before taking fresh positions.

According to the analyst, the stock has formed a topping pattern after its sharp rally earlier this year. He indicated that a decline towards ₹4,500 or a sustained move above ₹6,200 could provide stronger technical signals for investors evaluating fresh exposure.

The stock has also fallen below both its 50-day moving average (50-DMA) and 100-day moving average (100-DMA), indicating continued technical weakness.

Stock Placed Under ASM Stage 4

Amid heightened volatility, MTAR Technologies has been placed under Stage 4 of the Long-term Additional Surveillance Measure (ASM) framework by the exchanges.

Under ASM Stage 4, traders must provide 100% upfront margin, intraday leverage is not permitted and trades are settled on a gross basis. These measures are designed to reduce speculative trading in highly volatile stocks.

Company Overview

MTAR Technologies Ltd manufactures precision-engineered components and systems for the clean energy, nuclear, space, defence and aerospace sectors. The company has built a strong presence in hydrogen and fuel-cell technologies through its association with Bloom Energy, while also serving organisations such as ISRO, NPCIL and DRDO.

1. Why are MTAR Technologies shares falling?

The stock has declined due to weakness in Bloom Energy shares, selling across global AI-related stocks and increased volatility that has affected investor sentiment.

2. How much has MTAR Technologies fallen?

The stock has declined around 35% over the past 30 days and has hit the 5% lower circuit for four consecutive trading sessions.

3. What is ASM Stage 4?

ASM Stage 4 is the highest level under the Additional Surveillance Measure framework, requiring 100% upfront margin, no intraday leverage and gross settlement of trades.

4. What are analysts saying about MTAR Technologies?

While analysts remain positive on the company's long-term earnings growth, they recommend waiting for better entry levels or technical confirmation before initiating fresh positions.

5. What does MTAR Technologies manufacture?

The company manufactures precision engineering components for clean energy, hydrogen, nuclear, space, defence and aerospace industries.