Aimtron Electronics Ltd. is in focus after Nuvama Wealth initiated coverage on the SME stock with a 'Buy' rating and a target price of Rs 2,036, implying an upside of nearly 30% from its current price of Rs 1,565. The initiation comes even after the stock has already delivered multibagger returns, with shares gaining more than 114% over the past year.
Nuvama believes the company is 'ahead of time, by design', and its transition from a printed circuit board assembler into a full-fledged electronics system design and manufacturing (ESDM) player positions it well to benefit from India's manufacturing push.
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The brokerage expects revenue, EBITDA and profit to grow at a CAGR of 60%, 59% and 55%, respectively, over FY26 to FY28.
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Growth Drivers
The brokerage said Aimtron's growth is supported by a consolidated order book of around Rs 604 crore, providing revenue visibility for the next 12 to 16 months. Telecom, power and data centres account for nearly half the order book, while IoT, robotics, industrial electronics and automotive applications add further diversification.
The combined request-for-quotation pipeline exceeds Rs 1,300 crore, supporting management's ambition of scaling revenue to Rs 1,000 crore over the medium term.
Nuvama also highlighted the company's upcoming greenfield facility in Vadodara, which will add six SMT lines, in-house sheet metal fabrication and injection moulding capabilities, along with a dedicated research and defence zone. The expansion has the potential to contribute roughly Rs 500 crore in additional annual revenue over time.
Aimtron has also applied for incentives under the Electronics Components Manufacturing Scheme to produce optical transceivers for telecom and data centre applications.
Another key growth driver is the acquisition of US-based Aimtron International Controls, which expands the company's presence in high-reliability electronics and strengthens relationships with industrial OEMs.
Management is targeting annual revenue of $25 million to $30 million from the US business while lifting EBITDA margins to 20% to 22% over the medium term.
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