The ratings agency has also upgraded the short-term rating of company's bank facilities to 'CRISIL A2+' from 'CRISIL A2'.

CRISIL said that the ratings continue to reflect healthy business risk profile of MTAR marked by strong order book, long standing relationship with customers, strong export diversity and healthy operating profitability. The ratings also benefit due robust financial profile bolstered by recent IPO with healthy accruals and debt protection metrics.

These strengths are partially offset by large working capital requirement, customer concentration risk and susceptibility to risks inherent in a tender-based business.

MTAR Technologies develops and manufactures components and equipment for the defense, aerospace and nuclear sectors.

For the 3 months ended June 2021, the company registered a profit after tax (PAT) of Rs 8.7 crore on revenue of Rs 54 crore as against Rs 5.3 crore PAT on revenue of Rs 48.7 crore for the same period last year.

The scrip shed 0.03% to close at Rs 1476.85 on the BSE yesterday.

Shares of MTAR Tech debuted on the bourses on 15 March 2021, at a price of 1063.90 per share. Since then, the scrip has gained 38.81% to end at Rs 1476.85 on Tuesday.