This smallcap aerospace stock could soar 91%, predicts Nuvama

Published 7 July 2026 · finance

Nuvama initiated coverage on aerospace player Aequs with a 'Buy' rating and a target price of Rs 444, implying a 91% upside from the stock's

Nuvama initiated coverage on aerospace player Aequs with a 'Buy' rating and a target price of Rs 444, implying a 91% upside from the stock's previous closing price of Rs 232.Aequs deserves a valuation premium above pharma CDMOs, as unlike molecules, aircraft programmes never expire, Nuvama said in its latest report, calling the company a sector outperformer. The shares of the company surged 4% on Tuesday morning.The brokerage 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 via capital alone, it added.Also read: Aequs FY26 revenue rises 33% on aerospace, consumer business growthA solid $889 million order book warrants a 42% sales and 84% EBITDA CAGR over FY26-29, according to Nuvama. “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 at 7.4x revenue coverage is not just a sales pipeline; these are solid purchase orders tied to OEM production schedules, each part underpinned by a complete FAI and an 18–36 month requalification wall. The 5,654 SKUs compound this moat with every new part added. The strategic pivot toward engine components—cemented by the INR19bn Tamil Nadu MoU for India's first integrated aero-engine ecosystem—puts Aequs on the map,” Nuvama said.The brokerage noted that the consumer segment is loss-making today, and breakeven is a volume problem, not a margin one. While the plastics piece may take time to scale up, consumer electronics is likely to outpace growth in other segments, it further said, adding, “We approach margin assumptions with discipline: global peers Catcher Technology and Everwin Precision—precision enclosure suppliers to large consumer electronics companies—earn 8–15% operating margin, well below management's 20% EBITDA margin guidance. We are baking in a 15–18% EBITDA CAGR at steady state with a 75% 3Y sales CAGR.”Also read: From Airbus parts to war drones | How Aequs is quietly building India's most ambitious defence manufacturing playNuvama values Aequs on a 30-year DCF at 16% WACC, deliberately matching the longevity of programmes being served—Boeing 737 has run for 58 years and A320 for 38.