Defence stock to buy: Recent debutant up 58% in 6 months, should you buy — price targets

Defence stock to buy: Shares of recently listed Aequs Ltd have remained in focus lately as select brokerage firms have lifted the target prices sharply by up to 45 per cent, despite downgrading the stock, while others see the stock hitting its previous highs, based on the strong technical parameters.

Aequs Ltd reported a net loss of Rs 54 crore for the quarter ended on March 31, 2026 compared to a net profit of Rs 9 crore in the year ago period. The company clocked a 47 per cent year-on-year (YoY) growth in the revenue from operations at Rs 367.1 crore. Its Ebitda came in at Rs 32.1 crore with margins 9 per cent for the reported quarter.

Shares of Aequs jumped to Rs 196 on Friday, commanding a market capitalization of more than 13,000 crore. The stock is down 13 per cent from its record high at Rs 224.10 hit nearly a month ago, on April 27, 2026. Despite the correction, the stock has gained nearly 75 per cent from its all-time low at Rs 113.65 hit nearly two-and-a-half months ago on March 16, 2026.

To recall, shares of Aequs were listed at the bourses in December 2025, when the company raised a total of Rs 922 crore from its IPO by selling its shares for Rs 124 apeice. Even from the IPO price, the stock is up 54 per cent so far. The stock has gained nearly 40 per cent on a year-to-date basis.

Aequs’ ebitda significantly missed as ramp-up in consumer electronics led to full opex impact, versus partial cost capitalisation earlier. Working capital remained significantly elevated on inventory build-up in the aerospace business. Working capital may remain elevated on account of supply chain disruptions due to the West Asia crisis in the near term, but this will be a transient effect, said JM Financial Ltd.

Management guided for consumer Ebitda breakeven in Q4FY27 and potential net profit breakeven after H1FY28 as consumer ramps up. Rupee depreciation against the US dollar provides some relief. Gross block for consumers is Rs 830 crore and further capex appears to be aimed at scaling up the business. Management said it will be funded by debt and internal accruals, said JM Financial.

"Nevertheless, we cut FY27E/28E Ebitda estimates by 16 per cent/10 per cent, factoring in higher opex Our target price goes up to Rs 210 as we raise our FY30E exit multiple to 26 times to factor in 25 per cent re-rating in aerospace peers," it added but downgraded the stock to 'reduce' tag," it added. JM Financial has increased its target price by 44.8 per cent from Rs 145 earlier.

Incorporated in 2000, Bengaluru-based Aequs is engaged in manufacturing and operating a special economic zone in India to offer fully vertically integrated manufacturing capabilities in the Aerospace Segment. Its diverse product portfolio includes components for engine systems, landing systems, cargo and interiors, structures, assemblies and turning for the aerospace clients.

Aequs is in a strong uptrend and the last four weeks consolidation offer fresh entry opportunities. It has witnessed a sharp rebound from its key support zone of Rs 176–177 being the confluence of the previous major low and the 38.2 per cent Fibonacci retracement of the previous major rally (Rs 114 to 223) indicating sustained buying interest at lower levels, said Bajaj Broking.

"The stock has found support at its 50-day EMA, accompanied by strong volumes, suggesting that market participants continue to respect this critical support area. We expect the stock to resume up move and head towards the precious all time highs of Rs 223. On the downside, the next significant support is placed at the 50 per cent Fibonacci retracement level of Rs 169," it added.