Buy Netweb Technologies India; target of Rs 4110: ICICI Securities

Buy

ICICI Securities research report on Netweb Technologies India

Netweb is India’s leading high-end computing solutions (HCS) provider. Its offerings span: 1) HPC; 2) private cloud and HCI; 3) AI systems; 4) data centres; 5) HPS; and 6) software and services for HCS. HPC, private cloud and AI systems are its highgrowth segments with 77% FY22–25 CAGR. It is present in both hardware and software segments and offers hardware design, manufacturing and software capabilities, with a sole-mover advantage. Sectoral tailwinds include: 1) high domestic computing and data centre demand; and 2) government support from IndiaAI and National Supercomputing Mission. 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.

We model FY25–28E revenue/PAT CAGRs of 59%/58% and ascribe a 56x target multiple (in line with Dixon Technologies’ lifetime average P/E) on Dec’27E-ending EPS of INR 73. Our TP stands at INR 4,110. We bake in an INR 21.8bn fillip from the IndiaAI Mission order and factor in FY26–28E ex-strategic orders’ revenue CAGR of ~38%. We initiate coverage with a BUY rating.

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Netweb Technologies India - 15122025 - ics