Shares of Netweb Technologies rose 4% to Rs 3,334 apiece as ICICI Securities initiated coverage on computing solutions provider with "buy" rating. It gave a price target of Rs 4,110, which implies upside potential of up to 23%.
The brokerage said since Netweb is Nvidia's only original equipment manufacturer (OEM) partner in India, it gets early access to its chips and architectures.
Netweb's partnership with other chipmakers Intel and AMD allows it to get latest chips 12-14 months in advance, the domestic brokerage added.
The brokerage expects company's revenue to grow at a compounded annual growth rate of 59% between FY25 and FY28E, PAT at 58%.
So far in 2025, the stock rose 22%.
"Netweb’s USP lies in: 1) it being India’s only full-stack hardware provider, fortified by its design offerings, implementation and software stack; 2) its marquee clients with strong support from government programmes; and 3) its strong partnerships with OEMs like NVIDIA, AMD and Intel, aiding robust offerings," said the brokerage.
Sectoral tailwinds include: 1) high domestic computing and data centre demand; and 2) government support from IndiaAI and National Supercomputing Mission, it added.
However, the brokerage flagged the non-annuity nature of the business as a key risk. It also noted that AI-led benefits for IT services players have been limited over the past three years, with value capture skewed towards players higher up the hardware and systems value chain.
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