Shares of Dynamatic Tech surged over 8% in trade today after brokerage firm ICICI Securities initiated coverage on the stock with a Buy rating and a target price of Rs 10,250, which is a 31% upside from the stock’s current market price. Dynamatic Tech share price hit a fresh record high of Rs 8,088 today after the brokerage note.
ICICI Securities believes that the aerospace segment for the company is likely to drive earnings growth going forward. The company is the sole supplier of Flap Track Beams for Airbus’ 86% order backlog. The increasing potential of regional connectivity in India is likely to open more market in near future, said the brokerage firm in its note.
The stock has surged close to 57% so far this year, while it has delivered returns of 96% in the last six months and around 190% in the last one year, data from exchanges showed.
“Going ahead, we expect aerospace & defence segment to be the earnings driver, resulting in EBITDA CAGR of 19% and EBITDA margin of 17-18% (last five-year average: 13%) through to FY27E,” said ICICI Securities.
