Potential Multibagger: After a 49% decline from listing price, AMSEC sees over 119% upside in Ideaforge in 2 years

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₹732, just 9 percent higher from its IPO price of ₹672. The stock doubled versus its IPO price while debuting in July 2023 and hit a record high of ₹1,344 (100% premium to IPO price) on its listing day but has seen a downward trend since then. Last week (February 14), the stock hit its record low of ₹689, down 49 percent from its listing price (record high) and up just 2.5 percent from its IPO price.

The stock has gained over 4 percent in February so far after an over 14 percent decline in January this year. Meanwhile, post its listing in July 2023, the stock crashed over 13 percent in August 2023, 9 percent in September, 11 percent in October and 2 percent in November. However, it rose 6 percent in December, the only month in 2023 where the stock was positive post-listing.

Despite such a dismal performance, brokerage house Asian Market Securities (AMSEC) sees the stock delivering multi-bagger returns by December 2026. It has initiated coverage on the defense stock with a buy call and a target price of ₹1,607, indicating an upside potential of 119.5 percent from its CMP. "We expect ideaForge to see robust 30 percent/60 percent revenue/ PAT CAGR during FY23-26E, driven by its outstanding order book, and a substantial pipeline of potential awards.

We are initiating coverage with a 'BUY' rating, considering the medium-term perspective. With a significant addressable market, we assign a target price of ₹1,607 per share, valuing the company at 50x FY26E," the brokerage said. ideaForge reported a net profit of ₹14.8 crore during the December quarter surging sharp 1,562 percent compared to ₹0.89 crore in the previous quarter.