Ideaforge Tech shares hit 10% upper circuit after Defence Ministry order; what the charts reveal

Shares of Ideaforge Technology Ltd zoomed 10 per cent in Monday's trade to hit their upper price band of Rs 631.65 after securing an order worth around Rs 137 crore from the Ministry of Defence to supply Mini unmanned aerial vehicles (UAVs) with accessories.

"This is to inform you that ideaForge Technology Ltd (the Company), has received an order worth approx Rs 137 Crores (all inclusive) to supply Mini UAVs with accessories to Ministry of Defence," it stated, adding that these mini UAVs with accessories are to be delivered within 12 months.

The counter looked strong on charts and has potential to hit an upside target of Rs 660, said Ravi Singh, Senior Vice-President of Retail Research at Religare Broking. He advised investors to place a stop loss of Rs 615 for this trade.

IdeaForge's scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 66.38. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a negative price-to-earnings (P/E) ratio of 141.94 against a price-to-book (P/B) value of 4.13. Earnings per share (EPS) stood at (-)4.45 with a return on equity (RoE) of (-)2.91. According to Trendlyne data, IdeaForge has a one-year beta of 0.93, indicating low volatility.

On the earnings front, IdeaForge posted a net loss of Rs 26 crore for the March 2025 quarter, a sharp contrast to the net profit of Rs 10 crore recorded in the same quarter last year.

Its revenue from operations plummeted 80 per cent year-on-year (YoY) to Rs 20 crore in Q4 FY25, down from Rs 102 crore in the year-ago period. As of the end of March 2025, the company's order book stood at Rs 13.6 crore, down from Rs 20.7 crore in the preceding quarter.

As of March 2025, promoters held a 29.17 per cent stake in the company. Ideaforge is a vertically integrated company that designs, develops and manufactures indigenous UAVs.