140% rally in 4 months! This smallcap aerospace stock soars 18% in 3 days to fresh lifetime high. Should you buy?

The shares of Aequs extended sharp gains for the third consecutive session on Thursday, rallying more than 18% during the gaining streak to hit a lifetime high today as bullish brokerage calls boosted investor sentiment for the smallcap aerospace player.

Aequs shares jumped 7% today, hitting a record high of Rs 274.39 apiece. The sharp gains added more than Rs 2,850 crore to the smallcap company’s market capitalisation, taking it to above Rs 18,402 crore.

IIFL Capital on Aequs share price

IIFL Capital initiated coverage of Aequs with a Buy rating and a target price of Rs 320 per share, implying nearly 25% upside from the stock’s previous closing price of Rs 256.14 on the NSE.

The brokerage noted that Aequs is India’s only vertically integrated precision manufacturer of aerospace components and is extending its high-mix, low-volume manufacturing playbook into high-volume, high-mix consumer electronics, targeting a steady-state RoCE of nearly 20% by FY31. “While near-term valuations appear demanding, they are justified by Aequs’ differentiated franchise, deep competitive moats, and long-duration growth runway,” IIFL Capital said.

It added that the business in which Aequs operates has high entry barriers, driven by massive capital investments, multi-year customer qualification cycles, deep process engineering expertise, and stringent quality and certification requirements. These capabilities take decades to build and are difficult to replicate.
With integrated machining-to-assembly capabilities in India and strategic hubs in the US and France, Aequs enjoys Tier-1 supplier status with Airbus and Boeing, along with long-standing relationships with Safran, Collins, Spirit, and Honeywell, the brokerage said.While Aequs primarily operates in the aerospace segment, it has expanded over the past decade into consumer businesses, including consumer electronics, toys, and cookware.

“Given the scale-driven economics, high fixed-cost structure, and capital intensity of the ATP portfolio, we believe a consolidated valuation better captures the platform’s long-term earnings potential,” IIFL Capital said.

Also read: Smallcap aerospace stock jumps after earning bullish brokerage calls

Nuvama on Aequs share price

Earlier this week, Nuvama initiated coverage on Aequs with a Buy rating and a target price of Rs 444, implying an upside of nearly 73% from the stock’s previous closing price. The brokerage said Aequs deserves a valuation premium over pharma CDMOs because, unlike molecules, aircraft programmes never expire.

It also noted that Aequs is India’s only vertically integrated aerospace SEZ, supplying machined aerostructures, landing gear, and engine parts to OEMs such as Airbus and Boeing. It is also India’s first genuine pure-play aerospace precision manufacturer—a moat built over time, not through capital alone, it added.

According to Nuvama, the company’s $889 million order book supports a 42% revenue CAGR and an 84% EBITDA CAGR over FY26-29. “Fifteen years of patient capital allocation has produced something genuinely scarce in Indian manufacturing: a NADCAP-certified, vertically integrated aerospace SEZ supplying machined aerostructures, landing gear and engine parts from a single campus in Belagavi to Airbus, Boeing, Safran, Collins and Bombardier. The $889 million contracted order book, with 7.4x revenue coverage, is not just a sales pipeline; these are firm purchase orders tied to OEM production schedules.”

“Each part is backed by a complete FAI and an 18-36-month requalification barrier, while the 5,654 SKUs further strengthen this moat with every new part added. The strategic pivot towards engine components, cemented by the Rs 19 billion Tamil Nadu MoU for India’s first integrated aero-engine ecosystem, puts Aequs on the map,” Nuvama said.

Also read: This smallcap aerospace stock could soar up to 91%, predicts Nuvama

Aequs share price

Aequs shares listed at Rs 140 apiece on the NSE in December last year, marking a premium of nearly 13% over their IPO price of Rs 124. The IPO, comprising a fresh issue of Rs 670 crore and an offer for sale worth Rs 251.81 crore, received an overwhelming response from investors. It was subscribed 122.93 times in the QIB category, 83.61 times in the non-institutional investor category, and 81.03 times in the retail segment.

After listing, the shares fell more than 19% to a record low of Rs 113.30 in March this year. The stock has since rallied about 142% in nearly four months to hit a fresh lifetime high.

Also read: Why is market rising today? Sensex jumps over 600 points, Nifty reclaims 24,000. 5 key factors behind today’s sharp D-Street rebound

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)