Citi has maintained a ‘Neutral’ rating on Ajax Engineering, with a target price of ₹690, reflecting an 11% upside potential from current levels. However, the brokerage has revised down its profit estimates for FY26 and FY27 by 8.5% and 8.1% respectively, citing lower revenue expectations from the company’s self-loading concrete mixer segment.
The downward revision comes in the wake of higher cost projections based on recent Q4FY25 trends and management commentary.
Citi now estimates a 14% revenue CAGR for Ajax Engineering over FY24–FY27E, slightly lower than peers ACE (16%) and BEML (14%).
Despite modest growth expectations, the stock’s current valuation of around 24x Sep’26 PE is seen as a limiting factor to further upside, according to Citi.
Disclaimer: This article is based on a brokerage report and is meant for informational purposes only. Business Upturn does not offer investment advice or stock recommendations.
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