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ICICI Direct Research has assigned a Buy rating to Ratnaveer Precision Engineering Limited, setting a target price of 475 per share. The brokerage has arrived at this valuation by applying a multiple of 24x to its estimated FY28 earnings per share (EPS). Brokerage expects revenue to reach 2,072 crore and PAT 166 crore by FY28, reflecting its positive outlook on the companys growth prospects over the next two years.
In its November 2026 research update, ICICI Direct estimates Ratnaveers revenue and profit after tax (PAT) to grow at CAGRs of 39.2% and 60.6%, respectively, between FY26 and FY28. The projections are supported by expansion in the existing stainless-steel business and the phased commissioning of the companys 338 crore Copper Clad Laminate (CCL) project. ICICI Directs Financial Projections The brokerage expects Ratnaveers revenue to increase from 1,069 crore in FY26 to 1,365 crore in FY27 and 2,072 crore in FY28. EBITDA is projected to grow from 112 crore to 278 crore, while PAT is estimated to rise from 64 crore to 166 crore over the same period. - Revenue ( crore): FY26 1,069; FY27E 1,365; FY28E 2,072 - EBITDA ( crore): FY26 112; FY27E 143; FY28E 278 - EBITDA Margin: FY26 10.5%; FY27E 10.5%; FY28E 13.4% - PAT ( crore): FY26 64; FY27E 77; FY28E 166 - Diluted EPS (): FY26 9.4; FY27E 9.2; FY28E 19.7 The report estimates a significant improvement in profitability, with EBITDA margin projected to increase to 13.4% in FY28 from 10.5% in FY26. Diluted EPS is estimated at 19.7 for FY28. Q2 FY27 Performance Supports Growth Trajectory Ratnaveer reported Q2 FY27 revenue of 387 crore, registering 35.5% year-on-year growth. EBITDA increased 28.4% to 36.5 crore, while PAT grew 54.7% to 24.1 crore. EBITDA margin stood at 9.4%, while PAT margin improved by 77 basis points to 6.2%. Core Business Expansion and CCL Opportunity ICICI Direct highlights the companys target to grow revenue from its existing stainless-steel business to 1,350 crore in FY27 and 1,800 crore by FY28, compared with 1,080 crore in FY26. Phase-II capital expenditure of approximately 58 crore across fasteners, tubes and pipes, sheet-metal components and clips is expected to support the expansion. The brokerage also factors in the companys 338 crore investment in an ECMS-approved FR-4 CCL facility, planned with five production lines and an annual capacity of 79.2 lakh sheets. Civil construction was approximately 75% complete, with trial production targeted for December 2026. The first line is expected to ramp up utilisation to 85% by April 2027, followed by phased commissioning of additional lines. The first phase is expected to have annual capacity of 15.84 lakh sheets, with estimated revenue potential of 108 crore and EBITDA of 22 crore. The project provides an opportunity to participate in Indias CCL market, where over 90% of domestic requirements are currently met through imports. 475 Target Price with Buy Rating Based on its projected earnings growth, ICICI Direct has assigned a Buy rating and a target price of 475 per share, valuing Ratnaveer at 24x its estimated FY28 EPS. The brokerages outlook reflects its expectation of strong revenue and profit growth, supported by the core stainless-steel business and the proposed contribution from the CCL facility. The report identifies a slowdown in industrial capital expenditure and high working-capital requirements as key risks to its outlook. (ANI)
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