A newly-listed stock has more than doubled investors’ money in less than two months, and according to brokerage firm HDFC Securities, it can still rise further by more than 30% from the current levels.
The stock- Indo-MIM – debuted on the Indian bourses on 30 July this year. On 18 September, Indo-MIM share price hit a record high of ₹1,063.80 during the session, but ended 6.28% higher at ₹1,056.10, extending gains for the second consecutive session. At this level, the stock is up almost 118% from its IPO price of ₹485. The stock’s record low is ₹701, set on the listing day itself.
HDFC Securities says buy, sees 33% upside
On 18 September, domestic brokerage firm HDFC Securities initiated coverage on the Indo-MIM stock with a “buy” recommendation, fixing the target price of ₹1,407, at 54 times September 28E EPS and implying a 33% upside potential from the stock’s close of ₹1,057.85 on the same day on the BSE.
The brokerage firm is positive about the company’s growth prospects, underscoring that Indo-MIM is the world’s largest manufacturer of precision engineering components using the metal injection moulding (MIM) technology. It also continues to leverage diversified manufacturing technologies such as investment casting, precision machining, ceramic injection moulding, and metal 3D printing.
“Over the years, Indo-MIM has well-entrenched itself into the manufacturing innovation ecosystem in the US and is enjoying a leading market share with top US MNCs. This diversified capability stack positions it as a one-stop advanced manufacturing partner for global OEMs (original equipment manufacturers) requiring complex, high precision, miniaturised, and mission-critical components,” said the brokerage firm.
“We believe Indo-MIM has only scratched the surface, and next-generation innovations such as humanoids, satellite internet, space travel, aerospace engineering, data centres, and automation equipment for mobile lines will provide significant optionality over the next few years,” the brokerage firm added.
HDFC Securities believes Indo-MIM will be a key beneficiary of the ex-China supply chain for US manufacturing. Moreover, it finds the company “well-insulated” against the effects of tariffs as it has onsite manufacturing.
IML operates 15 facilities globally, which include six in India (Karnataka, Tamil Nadu, and Andhra Pradesh), six in the US, two in the UK, and one in Mexico. It supplies products to customers in more than 50 countries across the Americas, Europe, and Asia.
The only constraints to growth should be how quickly it can bring more capacities to capture the growth upside, as per the brokerage firm.
“High share of client wallet, extremely stringent entry barriers in innovation programs, and onsite presence are tough to replicate. This may cause Indo-MIM valuation multiple to rerate over the next few years and trade in line or at a premium to MNC cap goods multiple,” said HDFC Securities.
According to the estimates of the brokerage firm, the company’s revenue may grow at nearly 19% CAGR to ₹8400 crore over FY26-30E and EBITDA margin may stabilise in the 30-34% band. PAT may grow at about 32% CAGR to ₹1800 crore over FY26-30E and PAT margin to remain at nearly 18-21%, said the brokerage firm.
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