Buy Dynamatic Technologies; target of Rs 10,250: ICICI Direct

ICICI Direct is bullish on Dynamatic Technologies recommended buy rating on the stock with a target price of Rs 10,250 in its research report dated March 31, 2024.

Broker Research

April 01, 2024 / 16:47 IST

Buy

26 Aug, 2025 12:21

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ICICI Direct's research report on Dynamatic Technologies

We initiate coverage on Dynamatic Technologies (DTL) with BUY rating and a target price of INR 10,250/share (based on 45x FY26E EPS). Key points: 1) Sole supplier of Flap Track Beams (FTB) for Airbus’ 86% order backlog; 2) largest gear pump supplier in the world with a well-diversified client mix; 3) healthy blend of complex machining of the west and superior engineering of the east; 4) recent order wins likely to propel EBITDA to 2x FY23 by FY27E; and 5) likely to be a participant in domestic aerospace. Going ahead, we expect aerospace & defence segment to be the earnings driver, resulting in EBITDA CAGR of 19% and EBITDA margin of 17-18% (last five-year average: 13%) through to FY27E.

Outlook

On hydraulics front, we expect earnings to remain stable as the company has an existing orderbook of almost INR 50-60bn (~10x of revenue (ttm)), thus, keeping the revenue base diversified. We initiate coverage on DTL with BUY rating and TP of INR 10,250 based on 45x FY26E EPS.

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