MTAR Tech falls over 30% in one month: Analysts suggest trading levels for multi-bagger stock

MTAR Technologies shares hit the 5 percent lower circuit in Monday's trade, extending losses for the third straight session.

The stock has been locked in the 5 percent lower circuit for the last three trading sessions and has declined around 15 percent during the period. Over the past one month, the stock has fallen 31.41 percent.

Analysts said the recent correction has made valuations more attractive, but advised investors to wait for technical confirmation before taking fresh exposure.

Anand James, Chief Market Strategist at Geojit Investments, said, "Having made a clear topping pattern last month, there is no urgency in considering the stock just for the price advantage, unless we see a clear reversal pattern or at least a 61% retracement of the March-June move to 5440. That said, a collapse to the 4500 region or a direct rise above 6200 could interest us in checking if the reversal attempts are worth following."

Prasenjit Paul, Fund Manager at 129 Wealth & Research Analyst at Paul Asset, added, "After a sharp 30% correction, MTAR Technologies has cooled off meaningfully, with the RSI slipping close to the oversold zone. Despite the recent price weakness, the company's fundamentals remain strong, supported by a healthy order book in the defence and nuclear segments and management's FY27 revenue growth guidance of 50-80%. Long-term investors should avoid trying to catch a falling knife and instead prefer accumulating on declines, as long as the stock holds above its 200-DMA zone of around 4,750-4,800."

MTAR Technologies has been a multibagger stock, delivering returns of 128 percent over the last six months.

The sharp decline comes amid continued selling pressure in artificial intelligence (AI)-linked stocks across global equity markets. Weakness in the AI trade in markets such as the US, South Korea and Taiwan has also weighed on investor sentiment.

The stock had witnessed a sharp rally earlier as investors increasingly viewed the company as part of the AI infrastructure supply chain, raising expectations of higher valuations and stronger order inflows.

MTAR Technologies' association with Bloom Energy, which supplies fuel cell solutions for AI data centres, has strengthened its positioning in the segment. Bloom Energy's fuel cells are expected to be deployed in a proposed 1.8 GW data centre project in Cheyenne, Wyoming.