Netweb Technologies Gets 'Buy' Rating As ICICI Securities Initiates Coverage

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ICICI Securities Report

ICICI Securities has initiated coverage on Netweb Technologies India Ltd. with a Buy rating and a target price of Rs 4,110, implying a 28% upside from the current market price of Rs 3,201.

The brokerage sees Netweb as a unique play in India’s high-end computing solutions (HCS) space, backed by strong sectoral tailwinds and government support.

The brokerage noted that-

Unique positioning: Netweb is India’s leading high-end computing solutions (HCS) provider with hardware design, manufacturing, and software integration capabilities.

High-Growth Segments: Focus on high-performance computing, private cloud and hyper converged infrastructure, and AI systems with 77% CAGR in FY22–25.

Government Tailwinds: Beneficiary of IndiaAI Mission and National Supercomputing Mission with large budget allocations.

OEM Partnerships: Exclusive OEM partner for NVIDIA in India; also collaborates with AMD and Intel for advanced chipsets.

Pricing Power: End-to-end design, development, and deployment (3Ds) model ensures superior margins vs EMS peers.

AI-Led Opportunity: Prime beneficiary of AI-driven capex in India, offering exposure to sunrise sectors like AI hardware and sovereign compute infrastructure.

Strong Financial Outlook: Estimated FY25–28 revenue CAGR of ~59% and PAT CAGR of ~58%, with Ebitda margins in the 13–14% range.

Key risks

• Non-annuity nature of the business.

• Margin dilution from mega deal execution.

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