AI stock to buy: Despite a 9x rally in 3 yrs, analysts see upto 54% rise in this multibagger share

Netweb Technologies target prices: Despite delivering multibagger returns in just over three years since its stock market debut, domestic brokerage firms remain positive on Netweb Technologies India Ltd following its quarterly results. They are optimistic about global AI spending, new revenue streams and the company's growth outlook.

Netweb Technologies reported a 334.8 per cent year-on-year (YoY) jump in net profit to Rs 136.7 crore, while revenue soared 335.7 per cent YoY to Rs 1,323.3 crore in the September 2026 quarter. Its EBITDA surged nearly 430 per cent YoY to Rs 197 crore, with margins at 14.9 per cent. Its order book stood at Rs 2,629 crore as of September 30, 2026.

Shares of Netweb Technologies settled at Rs 4,353.35 on Tuesday, giving the company a market capitalisation of nearly Rs 26,000 crore. The stock has declined more than 25 per cent from its 52-week high of Rs 5,810, hit on August 24, 2026. However, it is up 48 per cent from its 52-week low of Rs 2,942.45, recorded in December 2025.

To recall, Netweb Technologies shares were listed in July 2023 after the company raised Rs 631 crore through its IPO at Rs 500 per share. As of Tuesday's close, the stock had delivered a return of around 770 per cent from its IPO price. At its all-time high, the stock had gained around 1,060 per cent from its IPO price.

Netweb reported robust growth, driven by traction in its high-performance computing (HPC), artificial intelligence (AI) and embedded systems (ES) segments. Its profit after tax (PAT) margin exceeded the company's guided range of 9–10 per cent. Netweb has increased its focus on research and development (R&D) by establishing a wholly owned subsidiary in Taiwan to gain access to premium hardware talent, ICICI Securities said.

Netweb's strong pipeline and order intake are supported by several catalysts, including AI emerging as a major global technology investment area, with demand in India receiving a boost from the government's AI Mission. Other growth drivers include the broader adoption of HPC by enterprises beyond research institutions, the National Supercomputing Mission (NSM) 2.0, rising demand for private cloud and hyperconverged infrastructure (HCI), the government's push for 'Make in India', and Netweb's strong ecosystem partnerships with NVIDIA, Equirus Securities said.

Equirus Securities also flagged risks from rising raw material prices and supply chain management (SCM)-related issues, which could affect execution despite the company's efforts to improve planning and build inventory to minimise execution-related risks.

"Netweb reiterated its EBITDA margin target of 13–14 per cent, which is encouraging. We maintain our 'Long' rating with a target price of Rs 5,560," the brokerage said.

"Apart from the usual tailwinds, incremental favourable factors include expected revenue from NSM 2.0, starting in early 2027, and demand from new domains such as physical AI and quantum computing, along with increased demand from the private sector," it said, maintaining a 'Buy' rating with a target price of Rs 5,360.

Netweb's inventory build-up is a conscious management decision to support execution, although it increases net working capital (NWC), IIFL Capital said. It added that IndiaAI's request for empanelment (RFE) for 10,000 GPUs and NSM 2.0 are key opportunities driven by government initiatives.

"After a strong Q2FY27, we expect sales and PAT to grow at a compound annual growth rate (CAGR) of 36 per cent and 37 per cent, respectively, over FY27–FY29. We initiate coverage with a 'Buy' rating and a target price of Rs 5,700," IIFL Capital said.

According to Bloomberg data, Monarch Networth Capital also has a 'Buy' rating on Netweb Technologies, with a target price of Rs 6,710. Its target price implies an upside of around 54 per cent from the stock's latest closing price.