VADODARA, GUJARAT: ICICI Direct Research has assigned a Buy rating to Ratnaveer Precision Engineering Limited, setting a target price of Rs 475 per share. The brokerage has arrived at this valuation by applying a multiple of 24x to its estimated FY28 earnings per share (EPS). Brokerage expects revenue to reach Rs 2,072 crore and PAT Rs 166 crore by FY28, reflecting its positive outlook on the company’s growth prospects over the next two years.
In its November 2026 research update, ICICI Direct estimates Ratnaveer’s revenue and profit after tax (PAT) to grow at CAGRs of 39.2% and 60.6%, respectively, between FY26 and FY28. The projections are supported by expansion in the existing stainless-steel business and the phased commissioning of the company’s Rs 338 crore Copper Clad Laminate (CCL) project.
ICICI Direct’s Financial Projections
The brokerage expects Ratnaveer’s revenue to increase from Rs 1,069 crore in FY26 to Rs 1,365 crore in FY27 and Rs 2,072 crore in FY28. EBITDA is projected to grow from Rs 112 crore to Rs 278 crore, while PAT is estimated to rise from Rs 64 crore to Rs 166 crore over the same period.
- Revenue (₹ crore): FY26 – 1,069; FY27E – 1,365; FY28E – 2,072
- EBITDA (₹ crore): FY26 – 112; FY27E – 143; FY28E – 278
- EBITDA Margin: FY26 – 10.5%; FY27E – 10.5%; FY28E – 13.4%
- PAT (₹ crore): FY26 – 64; FY27E – 77; FY28E – 166
- Diluted EPS (₹): FY26 – 9.4; FY27E – 9.2; FY28E – 19.7
The report estimates a significant improvement in profitability, with EBITDA margin projected to increase to 13.4% in FY28 from 10.5% in FY26. Diluted EPS is estimated at Rs 19.7 for FY28.
Q2 FY27 Performance Supports Growth Trajectory
Ratnaveer reported Q2 FY27 revenue of Rs 387 crore, registering 35.5% year-on-year growth. EBITDA increased 28.4% to ₹36.5 crore, while PAT grew 54.7% to Rs 24.1 crore. EBITDA margin stood at 9.4%, while PAT margin improved by 77 basis points to 6.2%.
Core Business Expansion and CCL Opportunity
ICICI Direct highlights the company’s target to grow revenue from its existing stainless-steel business to Rs 1,350 crore in FY27 and Rs 1,800 crore by FY28, compared with Rs 1,080 crore in FY26. Phase-II capital expenditure of approximately Rs 58 crore across fasteners, tubes and pipes, sheet-metal components and clips is expected to support the expansion.
The brokerage also factors in the company’s Rs 338 crore investment in an ECMS-approved FR-4 CCL facility, planned with five production lines and an annual capacity of 79.2 lakh sheets. Civil construction was approximately 75% complete, with trial production targeted for December 2026. The first line is expected to ramp up utilisation to 85% by April 2027, followed by phased commissioning of additional lines.
The first phase is expected to have annual capacity of 15.84 lakh sheets, with estimated revenue potential of Rs 108 crore and EBITDA of Rs 22 crore. The project provides an opportunity to participate in India’s CCL market, where over 90% of domestic requirements are currently met through imports.
Rs 475 Target Price with Buy Rating
Based on its projected earnings growth, ICICI Direct has assigned a Buy rating and a target price of Rs 475 per share, valuing Ratnaveer at 24x its estimated FY28 EPS. The brokerage’s outlook reflects its expectation of strong revenue and profit growth, supported by the core stainless-steel business and the proposed contribution from the CCL facility.
The report identifies a slowdown in industrial capital expenditure and high working-capital requirements as key risks to its outlook.
