Aequs Stock Hits All-Time High After Analyst Initiates Coverage With 'Buy' Rating

Contract manufacturer Aequs saw its shares climb as much as 12% to reach an all-time high of ₹271 per share on the BSE on Monday. The rally was driven by Nuvama Institutional Equities, which initiated coverage on the stock with a 'Buy' rating and a 12-month target price of ₹444, implying a potential upside of over 90%.

The stock later pared some gains but was still trading 6.12% higher at ₹257.60 at 11:57 IST. At that point, the company's market capitalization stood at approximately $1.8 billion. Aequs shares have gained around 12% over the past two trading sessions and are up 87% year-to-date.

Nuvama highlighted Aequs as India's only vertically integrated aerospace SEZ, supplying machined aerostructures, landing gear, and engine components to global original equipment manufacturers (OEMs) including Airbus, Boeing, Safran, Collins, and Bombardier. The brokerage believes Aequs merits a valuation premium over pharmaceutical contract manufacturers due to the longer lifecycles of aircraft programs.

The company's $889 million order book provides significant revenue visibility. Nuvama projects a 42% revenue CAGR and an 84% EBITDA CAGR between fiscal years 2026 and 2029. The brokerage noted that while Aequs' consumer business remains loss-making, it expects the consumer electronics segment to grow faster than other parts of the company.

Key risks identified by Nuvama include extended raw material lead times, execution challenges in the consumer segment, and the incomplete recovery in Boeing's production. Aequs is currently investing in building an aerospace engine component ecosystem in India and has secured expansion agreements with the government and partners.