Multibagger defence stock down 10% in 2 days; brokerage downgrade after muted Q2 show
Netwet Q2 results & target price: Multibagger defence and AI stock Netweb Technologies has seen some downgrades after the company reported a mixed set of numbers for the September 2025 quarter.
- Nov 5, 2025,
- Updated Nov 5, 2025 1:44 PM IST
Netwet Q2 results & target price: Multibagger defence and AI stock Netweb Technologies has seen some downgrades after the company reported a mixed set of numbers for the September 2025 quarter, citing its rich valuations after recent run-up. The stock has been extending its gains lately, correcting nearly 10 per cent in just two days.
Shares of Netweb Technologies settled at Rs 3631.95 on Tuesday, falling 4.35 per cent for the day. The stock was seen at Rs 4,040 on Friday, October 31. The stock market capitalization of the company stood little more than 20,500 crore. The stock has tumbled nearly 20 per cent from its 52-week high at Rs 4,480, hit in October 2025.
Netweb's PAT stood at Rs 31.43 crore in September 2025 quarter, an increase of 20.1 per cent on a year-on-year (YoY) basis, while PAT margin was seen at 10.3 per cent. Its operating revenue rose 21 per cent YoY to Rs 303.72 crore. Operating Ebitda increased 25.1 per cent YoY to Rs 45.46 crore, while margins came in at 15 per cent for the quarter.
Netweb reported moderate revenue/PAT growth of 21 per cent/22 per cent YoY, a QoQ flattish performance a 22 per cent/18 per cent miss to IIFLe). While large strategic order wins under India AI Mission (IAIM), worth Rs 2,200 crore have significantly enhanced growth visibility in the near term, said IIFL Securities, which has kept its forecasts unchanged for now.
Management guides only 1/3rd of these projects to be billed in FY26, much softer than initial expectations; but expects 1HFY26 growth of over 50 per cent in the base business to sustain. Management expects significant traction in its base business, apart from continued order wins under IAIM. Valuations at 52 times FY27ii EPS are now rich," it added with a 'buy' and a target price of Rs 4,110.
Shares of Netweb Technologies soared nearly 250 per cent within a span of 6 months, from its 52-week low at Rs 1,278.85, hit in April 2025. The stock is still 185 per cent above its 52-week lows. Netweb Technologies had launched its IPO in July 2023 and the stock has soared nearly 800 per cent as of its 52-week high, while 650 per cent from its IPO price.
Netweb’s 2Q performance was largely in-line on Revenues but beat on OPM. Netweb’s growth prospects are further strengthened given a healthy deal pipeline. As per Netweb, its order pipeline remains robust considering its unique tie up with NVIDIA, Intel & AMD; said Equirus Securities.
"We believe that Netweb’s above growth potential to some extent is getting priced in considering significant uptick in its share price. Hence, we downgrade Netweb to 'ADD' (from 'LONG 'earlier) with December 2026 target price of Rs 4005, set at forward PE of 65 times EPS of Rs 61.6 versus earlier at 50 times EPS of Rs 50.2," it added.
Netwet Q2 results & target price: Multibagger defence and AI stock Netweb Technologies has seen some downgrades after the company reported a mixed set of numbers for the September 2025 quarter, citing its rich valuations after recent run-up. The stock has been extending its gains lately, correcting nearly 10 per cent in just two days.
Shares of Netweb Technologies settled at Rs 3631.95 on Tuesday, falling 4.35 per cent for the day. The stock was seen at Rs 4,040 on Friday, October 31. The stock market capitalization of the company stood little more than 20,500 crore. The stock has tumbled nearly 20 per cent from its 52-week high at Rs 4,480, hit in October 2025.
Netweb's PAT stood at Rs 31.43 crore in September 2025 quarter, an increase of 20.1 per cent on a year-on-year (YoY) basis, while PAT margin was seen at 10.3 per cent. Its operating revenue rose 21 per cent YoY to Rs 303.72 crore. Operating Ebitda increased 25.1 per cent YoY to Rs 45.46 crore, while margins came in at 15 per cent for the quarter.
Netweb reported moderate revenue/PAT growth of 21 per cent/22 per cent YoY, a QoQ flattish performance a 22 per cent/18 per cent miss to IIFLe). While large strategic order wins under India AI Mission (IAIM), worth Rs 2,200 crore have significantly enhanced growth visibility in the near term, said IIFL Securities, which has kept its forecasts unchanged for now.
Management guides only 1/3rd of these projects to be billed in FY26, much softer than initial expectations; but expects 1HFY26 growth of over 50 per cent in the base business to sustain. Management expects significant traction in its base business, apart from continued order wins under IAIM. Valuations at 52 times FY27ii EPS are now rich," it added with a 'buy' and a target price of Rs 4,110.
Shares of Netweb Technologies soared nearly 250 per cent within a span of 6 months, from its 52-week low at Rs 1,278.85, hit in April 2025. The stock is still 185 per cent above its 52-week lows. Netweb Technologies had launched its IPO in July 2023 and the stock has soared nearly 800 per cent as of its 52-week high, while 650 per cent from its IPO price.
Netweb’s 2Q performance was largely in-line on Revenues but beat on OPM. Netweb’s growth prospects are further strengthened given a healthy deal pipeline. As per Netweb, its order pipeline remains robust considering its unique tie up with NVIDIA, Intel & AMD; said Equirus Securities.
"We believe that Netweb’s above growth potential to some extent is getting priced in considering significant uptick in its share price. Hence, we downgrade Netweb to 'ADD' (from 'LONG 'earlier) with December 2026 target price of Rs 4005, set at forward PE of 65 times EPS of Rs 61.6 versus earlier at 50 times EPS of Rs 50.2," it added.