Smallcap aerospace stock jumps 17% in two days after earning bullish brokerage calls

Aequs shares soared to a fresh lifetime high of Rs 271 apiece on the NSE on Wednesday. The sharp gains added more than Rs 2,626 crore to the small-cap company’s market capitalisation, taking it to nearly Rs 18,200 crore.

IIFL Capital initiated coverage of Aequs with a ‘Buy’ rating and a target price of Rs 320 per share, implying nearly 32% upside from the stock’s previous closing price of Rs 242.43 on the NSE.

The brokerage highlighted that Aequs is India’s only vertically integrated precision manufacturer of aerospace components and is extending its high-mix, low-volume manufacturing playbook into high-volume, high-mix consumer electronics, targeting a steady-state RoCE of nearly 20% by FY31.

“While near-term valuations appear demanding, they are justified by Aequs’ differentiated franchise, deep competitive moats, and long-duration growth runway,” IIFL Capital said.

It added that the business has high entry barriers, driven by significant capital investments, multi-year customer qualification cycles, deep process engineering expertise, and stringent quality and certification requirements. These capabilities take decades to build and are difficult to replicate.

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Also read: This smallcap aerospace stock could soar up to 91%, predicts Nuvama

With integrated machining-to-assembly capabilities in India and strategic hubs in the US and France, Aequs enjoys Tier-1 supplier status with Airbus and Boeing, alongside long-standing relationships with Safran, Collins, Spirit, and Honeywell, the brokerage said.While Aequs primarily operates in the aerospace segment, it has expanded over the past decade into consumer businesses, including consumer electronics, toys, and cookware.

“Given the scale-driven economics, high fixed-cost structure, and capital intensity of the ATP portfolio, we believe a consolidated valuation better captures the platform’s long-term earnings potential,” IIFL Capital said.

Nuvama also initiated coverage on Aequs with a ‘Buy’ rating and a target price of Rs 444, implying an upside of nearly 83% from the stock’s previous closing price.

The brokerage said Aequs deserves a valuation premium over pharma CDMOs because, unlike molecules, aircraft programmes never expire.

It also noted that Aequs is India’s only vertically integrated aerospace SEZ, supplying machined aerostructures, landing gear, and engine parts to OEMs such as Airbus and Boeing. It is also India’s first genuine pure-play aerospace precision manufacturer—a moat built over time, not through capital alone, it added.

According to Nuvama, the company’s $889 million order book supports a 42% revenue CAGR and an 84% EBITDA CAGR over FY26–29.

“Fifteen years of patient capital allocation has produced something genuinely scarce in Indian manufacturing—a NADCAP-certified, vertically integrated aerospace SEZ supplying machined aerostructures, landing gear, and engine parts from a single campus in Belagavi to Airbus, Boeing, Safran, Collins, and Bombardier.

“The $889 million contracted order book, with 7.4x revenue coverage, is not just a sales pipeline; these are firm purchase orders tied to OEM production schedules, with each part backed by a complete FAI and an 18–36-month requalification barrier. The 5,654 SKUs further strengthen this moat with every new part added.

Also read: Contract manufacturer Aequs posts 33% growth in revenue in FY26, losses widen for the year

“The strategic pivot toward engine components—cemented by the Rs 19 billion Tamil Nadu MoU for India’s first integrated aero-engine ecosystem—puts Aequs on the map,” Nuvama said.

Aequs shares listed at Rs 140 apiece on the NSE in December last year, marking a premium of nearly 13% over their IPO price of Rs 124.

The IPO, comprising a fresh issue of Rs 670 crore and an offer for sale worth Rs 251.81 crore, received an overwhelming response from investors. It was subscribed 122.93 times in the QIB category, 83.61 times in the non-institutional investor category, and 81.03 times in the retail segment.

After listing, the shares fell more than 19% to a record low of Rs 113.30 in March this year. The stock has since rallied about 139% in nearly four months to hit a fresh lifetime high.