Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by robust order inflows and strategic partnerships.
Basis of our Recommendation
Netweb Technologies is positioned favorably within India's AI infrastructure sector, driven by significant government orders and a partnership with Nvidia. The company reports a robust order book and pipeline, indicating strong revenue visibility. However, there are concerns regarding potential revenue volatility and margin pressures associated with strategic projects.
Why We Like This Stock
- Strong order book of nearly Rs. 2,400 crore and a pipeline of Rs. 4,400 crore
- Positive outlook for 35-40% revenue growth driven by government AI orders
- Strategic partnership with Nvidia enhances competitive positioning
Things To Watch Out For
- Potential quarterly revenue volatility from lumpy AI orders
- Slightly lower margins on strategic projects
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 724 | 1,149 | 2,184 | 3,182 | 4,276 |
| Profit Before Tax (Cr.) | 102 | 153 | 277 | 435 | 574 |
| PBT Margin | 14.1% | 13.4% | 12.7% | 13.7% | 13.4% |
| Net Profit (Cr.) | 76 | 113 | 207 | 324 | 427 |
| EPS | 13.3 | 19.9 | 36.3 | 56.8 | 75.0 |
Company Overview
Show Company Profile
Netweb Technologies India Limited designs, manufactures, and sells high-end computing solutions in India. The company offers supercomputing systems; private cloud and hyperconverged infrastructure, including private cloud, hybrid cloud, cloud tools, and cloud native storage; artificial intelligence (AI) systems and enterprise workstations; high performance storage solutions; data centre servers; and enterprise grade network switches and software. It also provides cloud migration, managed cloud, Openstack cloud, high performance computing on cloud, managed kubernetes, AI and machine learning, strategic consultation, migration/implementation, optimization advice, and technical support services. In addition, the company provides solutions, such as AI and big data, HPC, cloud, kubernetes, surveillance, and unified storage solutions. It sells its products under the Tyrone brand name. The company serves information technology and enabled services, entertainment and media, banking, financial and insurance, national data centres, government, defense, education, and research institutions. The company was formerly known as Netweb Technologies India Private Limited and changed its name to Netweb Technologies India Limited. Netweb Technologies India Limited was incorporated in 1999 and is based in Faridabad, India.