Nuvama Buys Aimtron Electronics, Sees 30% Upside
By Business Desk
Nuvama Wealth initiates ‘Buy’ on Aimtron Electronics with a Rs 2,036 target price, projecting a 30% upside despite its recent 114% rally. Explore growth prospects.
Nuvama Wealth has initiated coverage on Aimtron Electronics Ltd., an SME stock, with a “Buy” rating, setting a target price of Rs 2,036. This recommendation suggests a potential upside of nearly 30% from its current price of Rs 1,565, even as the stock has surged over 114% in the past year.
- Rating: Buy
- Target Price: Rs 2,036
- Current Price: Rs 1,565
- Potential Upside: nearly 30%
- Past Year Rally: over 114%
Nuvama views Aimtron as “ahead of time, by design,” citing its transformation from a printed circuit board assembler into a comprehensive electronics system design and manufacturing (ESDM) company. This strategic shift aligns directly with India’s broader manufacturing growth initiatives.
Robust Growth Projections and Order Book
The brokerage anticipates significant financial expansion for Aimtron, projecting robust Compound Annual Growth Rates (CAGR) between FY26 and FY28. These include revenue growth at 60%, EBITDA at 59%, and profit at 55%.
- Consolidated Order Book: approximately Rs 604 crore
- Revenue Visibility: 12 to 16 months
- Request-for-Quotation (RFQ) Pipeline: exceeding Rs 1,300 crore
- Medium-Term Revenue Goal: Rs 1,000 crore
Key drivers for this growth include a strong consolidated order book providing revenue visibility for the next 12 to 16 months, with telecom, power, and data centers contributing significantly. The company’s substantial request-for-quotation pipeline also supports its ambition to achieve Rs 1,000 crore in revenue in the medium term.
Strategic Expansion and US Market Penetration
Aimtron’s expansion strategy includes a new greenfield facility in Vadodara, designed to boost its manufacturing capabilities and annual revenue. This facility is expected to add Rs 500 crore in annual revenue.
- New Vadodara Facility Annual Revenue Potential: Rs 500 crore
- US Business Annual Revenue Target: $25 million to $30 million
- US Business EBITDA Margins: 20% to 22%
The Vadodara site will feature six SMT lines, in-house sheet metal fabrication, injection molding, and a dedicated research and defense zone. Furthermore, the acquisition of US-based Aimtron International Controls strengthens its presence in high-reliability electronics and OEM relationships, targeting $25 million to $30 million in annual revenue from the US business with EBITDA margins of 20% to 22%.