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Ashika initiates ideaForge coverage with ₹942 target price
The brokerage expects Ideaforge’s EBITDA margin to rise from 2% to 29% over two years as revenue scales.
Ashika Institutional Research initiated coverage on ideaForge Technology with a BUY rating and set a target price of ₹942, versus a then-current market price of ₹741, implying 27% upside, LiveMint Markets reported.
The brokerage tied its investment case to what it described as a multi-year opportunity for domestic drone manufacturers as India’s defence procurement demand expands, and said the drone industry has reached an inflection point after Operation Sindoor, the Russia-Ukraine war, and conflicts in West Asia.
Ashika said the thesis is an operating leverage story, with fixed employee and other expenses not growing as quickly as revenue. It projected EBITDA margin rising from 2% to 29% over two years as revenue nearly doubles each year, LiveMint Markets added.
The brokerage also valued the company at 32x FY28E P/E, based on its estimated FY28 earnings per share, according to LiveMint Markets.