The ‘Buy’ recommendation comes from brokerage firm Nuvama Institutional Equities who initiated coverage with a ‘Buy’ rating and a price target of ₹800, which implies a potential upside of 18% from Wednesday’s closing levels.
The brokerage, in its note, wrote that Ajax is a reinforced play on the fast-growing mechanised concreting equipment (CE) industry —likely to expand at a 12% CAGR over FY25–29E.
Ajax holds a dominant 75% market share in self-loading concrete mixers (SLCMs) and maintains a solid presence in other CE segments.
Nuvama mentioned that Ajax’s competitive advantages like better cost efficiency, quality, and increasing mechanisation will build up its growth edifice.
Ajax delivered a 20% topline CAGR over FY15–25E, with FY26E growth expected to moderate to 9% due to new emission norms. However, Nuvama reckons that medium-term uptrend remains solid.
Ajax introduced SLCMs in India in 1992 and still dominates with a 75% share. These SLCMs command the highest resale value versus global peers —Schwing Stetter, Putzmeister, KYB-Conmat—due to many factors: first-mover advantage, better quality, reliability, and service life of products, comprehensive product range and wide after-sales service.
“Overall, we reckon a revenue CAGR of 13% over FY25–29E led by 12%/17%/18% growth in SLCM/non-SLCM/spares. The medium-term outlook is robust; FY26 growth shall be moderate at 9% owing to emission norms’ changes,” it said.
Nuvama expects a 13% revenue and 14% EPS CAGR over FY25–29E.
The brokerage argued that a high target multiple is justified by continued outperformance with high RoIC compared with peers.
Key risks, as per the brokerage, include slower-than-expected growth and margin pressures in FY26 due to emission changes and slow execution of infra/real estate projects; and market share pressures due to failure of new products or higher competitive intensity.
Shares of Ajax Engineering Ltd. settled 3.40% higher at ₹700.20. The stock has risen 11% from its IPO price of ₹629.
