Fractal Analytics shares jump 7% a day after weak market debut; this brokerage sees up to 49% upside

Fractal Analytics shares jump in trade.

• Fractal Analytics shares rose over 7 percent after a weak market debut.
• Prabhudas Lilladher starts coverage with a 'BUY' rating.
• Target price set at Rs 1,260, suggesting 49% upside potential.

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Fractal Analytics shares rose more than 7 percent on Tuesday, a day after a weak market debut, following initiation of coverage by brokerage Prabhudas Lilladher with a ‘buy’ rating.

The stock was trading 7.46 percent higher at Rs 910.70 per share on the NSE at around 2:20 pm.

The brokerage has set a target price of Rs 1,260, indicating an upside potential of 49 percent from Monday’s closing price.

Prabhudas Lilladher said the company has demonstrated consistent revenue performance over the past decade, clocking a 27 percent compound annual growth rate in dollar terms. It also highlighted 98 percent client retention, a strong sales engine and research and development-led innovation.

Fractal operates in the analytics space, providing AI-led solutions for enterprise decision-making. About 80 percent of its revenue comes from existing accounts, with 98 percent annuity-led revenue, the brokerage said. Backed by a 150-member sales team, the company continues to scale wallet share.

"Fractal is systematically graduating accounts across tiers, while broadening its base, implying structured account mining," the brokerage said. It added that the company’s execution strength stems from the leadership team’s experience in AI, analytics and enterprise transformation.

The brokerage said the company’s engagements are centred on upstream AI architecture, combining data engineering, customised reasoning models and agentic AI software. Around 40 percent of revenue comes from the revenue growth management segment, while more than 50 percent exposure is to healthcare and life sciences solutions and consumer packaged goods services.

Prabhudas Lilladher expects the company’s earnings before interest, tax, depreciation and amortisation to grow at a compound annual rate of 30.9 percent and net profit at 44.5 percent over FY26 to FY28. Revenue in dollar terms is projected to grow at a compound annual rate of 19.3 per cent during the same period.

The stock also drew support from a rally in IT shares during the session.

On Monday, shares of the AI solutions provider ended with a discount of 7 percent against the issue price of Rs 900. The stock had listed at Rs 876 on the NSE, down 2.67 percent from the issue price. It touched an intra-day high of Rs 897.30 before settling at Rs 837.70, down 6.92 percent.

On the BSE, the shares opened flat at Rs 900 and later closed at Rs 847.40, down 5.84 percent.

At the close of trade on Monday, the company’s market valuation stood at Rs 14,572.32 crore on the BSE.

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