Domestic brokerage firm Choice International Equities has initiated coverage on Rishabh Instruments with a ‘Buy’ rating, citing multiple growth drivers that could support the stock’s rally. The stock has been scaling record highs this year, and the brokerage expects the upward momentum to continue, backed by several structural tailwinds.
The brokerage has set a target price of ₹830 per share, which indicates an upside potential of 22.5%. It highlighted the company’s efforts in recent years to diversify beyond its core Electrical and Electronic Instruments (EEI) business by expanding into new product segments, which have begun to yield results.
The EEI business remains Rishabh Instruments’ primary growth driver, accounting for 69% of the company’s FY26 revenue. According to Choice International Equities, structural tailwinds from electrification, renewable energy integration, industrial digitalization, data centers, and energy-efficiency initiatives are expected to support demand for advanced measurement and automation solutions.
Meanwhile, the company has expanded its product portfolio over the past five years, building multiple growth engines beyond its core EEI business. These newer products now contribute revenue equivalent to 10% of the EEI business, highlighting the successful commercialization of its research and development (R&D) investments.
The brokerage expects medium-voltage current transformers (CTs), electronic manufacturing services (EMS) capabilities, and solar string inverters to drive product premiumization and strengthen the company’s presence in higher-value applications.
It also highlighted opportunities in the company’s High-Pressure Die-Casting (HPDC) business, which serves industrial automation, electrical engineering, heating, ventilation and air-conditioning (HVAC), and energy infrastructure applications. Its offerings also include value-added machined, coated, and assembled components.
As new deals ramp up over the next six to 12 months, the brokerage expects the portfolio reset in the HPDC business to support a gradual turnaround. A stronger order mix and improving demand across non-automotive end markets could further aid the recovery, according to the brokerage.
Stock extends winning run
The shares have extended their winning run this year, rallying 70% so far to reach ₹677.90 apiece after delivering a return of 18.52% in 2025. After remaining under pressure for a prolonged period following its listing, the stock rebounded in March 2025 and has continued its upward trajectory since then, surging 222%.
The rally also propelled the stock to a fresh all-time high of ₹852 apiece last month. The stock closed in the green in five of the past six months, with April recording the biggest monthly gain of 35%.
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