Ather Energy Shares In Focus As HDFC Securities Raises Target Price — Buy, Sell or Hold?

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HDFC Securities Report

The brokerage firm HDFC Securities Institutional Equities has maintained Buy rating on Aether Industries Ltd., with a target price of Rs 1,429.

The brokerage highlighted that the company's growth will be led by-

1. ramp-up in exclusive manufacturing for Milliken Chemical and Baker Hughes,
2. ramp-up in Pharma and Agrochemical molecules at recently commissioned Block 1 and Block 2 at the company's site Magnum (Site 5, Panoli),
3. commissioning and ramp-up of the other 14 blocks at Magnum site over three years in phases,
4. Doubling of R&D capacity and capabilities at site Catalyst (Site 1, Sachin) and
5. increase in utilization of site 2 and site 3.

The brokerage recently visited the company's manufacturing site Magnum and R&D centre and interacted with the management. The company plans to incur a capex of Rs 300 to 350 crore each year during FY27-FY29 with focus on site Magnum.

Capex will be funded through a mix of debt, internal accruals, and customer advances/deposits. All three business segments will drive growth for the company with more skew towards contract, exclusive manufacturing and contract research and manufacturing services.

Management reaffirmed its vision to have 70% of revenue coming from CEM and CRAMS segments by FY30.

The brokerage expects revenue/Ebitda/PAT compound annual growth rates of ~28/29/32% over FY26-FY29E.

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