Netweb Tech shares fall 37% in 6 months; here's what analysts predict for the stock

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26 Aug, 2025 12:21

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Despite a 37 percent decline in stock price in the past six months, brokerage firms remain optimistic about Netweb Technologies' long-term growth, particularly in artificial intelligence (AI) and high-performance computing (HPC). Netweb Technologies is currently trading within a defined range of Rs 1,400 to 1,800, struggling to gain momentum beyond key resistance levels, according to analysts.

Om Mehra, Technical Analyst at Samco Securities, points out that the stock is above the 9 EMA but below the 20 EMA, indicating mixed signals. "A sustained move beyond this range could trigger bullish momentum, potentially leading to a breakout," Mehra noted. However, he cautions that selling pressure could push the stock into a corrective phase. The RSI remains neutral, while volume action suggests market participants are waiting for confirmation. He highlights Rs 1,550 as a short-term resistance level, which, if breached, could trigger an upside rally. However, failure to hold above Rs 1,350 could lead to intensified selling pressure.

Ajit Mishra, Head Research Analyst at Religare Broking, sees signs of a strong base forming, with prices hovering around a support zone and showing sideways consolidation with higher lows. "This suggests a positive bias in the near term, where Rs 1,290 could act as strong support, with potential upside towards Rs 1,800 to 1,820 in the coming sessions," Mishra explained.

Equirus Securities has upgraded its rating on Netweb from 'Add' to 'Buy' while IIFL Capital has maintained an 'Add' rating with a target price of Rs 2,130 (50x FY27ii EPS).

Netweb's AI business has emerged as a key growth driver, now contributing 14.7 percent of total revenue, up from 8 percent a year ago. This share is projected to increase to 20 percent by the end of FY 2025, backed by rising AI investments from both government and private-sector players. Export revenues also formed 9 percent of the company’s total revenue, signaling expanding international demand for its AI and high-performance computing (HPC) solutions.

The company also made strategic advancements in AI with the launch of Skylus.ai, a GPU resource optimization platform, and received a strong endorsement from Nvidia CEO Jensen Huang for its AI GPU systems based on ARM architecture.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.