The rally comes after global brokerage firm Goldman Sachs upgraded the stock to ‘Buy’ from ‘Sell’, with a price target of ₹910 per share.
Key drivers behind the upgrade
– Total Addressable Market (TAM) is expected to increase to $14.5 billion by FY32, up from $9.02 billion, while market share is expected to rise to 3.3% from 2.9%.
– Further margin expansion is forecast, with operating margins expected to grow to 39.6% by FY32, compared to 38.5% currently.
– Valuation catch-up potential, as the stock may still be undervalued.
– Government support is seen as an additional growth lever.
– Order inflows are estimated to grow at a 31% CAGR over FY25–FY28E.
Shares of Schneider Electric Infrastructure are currently trading 1.63% higher at ₹762.40. The stock has risen over 15% in the last one month.
