# ICICI Direct targets 39% upside for GEE Ltd stock

> ICICI Direct sees 39% upside for GEE Ltd stock despite 86% surge in 6 months.
- Title: ICICI Direct targets 39% upside for GEE Ltd stock · mint
- Summary: ICICI Direct sees 39% upside for GEE Ltd stock despite 86% surge in 6 months. ICICI Direct targets ₹170 for GEE Ltd stock, implying 39% upside from ₹124…
- Keywords: icici direct, gee ltd, small-cap stock, target price, upside, revenue growth, profit outlook, nuclear power, defence shipbuilding, capacity utilisation, money, business
- Source: mint — https://livemint.com/market/stock-market-news/already-up-86-in-6-months-icici-direct-still-sees-another-39-upside-in-this-small-cap-stock-check-target-rationale-11792142941201.html
- Author: Pranati Deva
- Published: 2026-10-16T10:53:25+00:00
- Read time: 1 min
- Topics: icici direct, gee ltd, small-cap stock, target price, upside, revenue growth, profit outlook, nuclear power, defence shipbuilding, capacity utilisation, money, business
## ICICI Direct initiates coverage
ICICI Direct initiated coverage on GEE Ltd with a Buy rating and a ₹ 170 target price.

> ICICI Direct initiated coverage on GEE Ltd with a Buy rating and a ₹ 170 target price, implying 37% upside from ₹ 124
## Current stock price and performance
Stock rose 3.5% to ₹126.65 on BSE after touching 52-week high of ₹143.05 in September 2026.

> In today's trading session, the stock rose 3.5% to ₹ 126.65 apiece on the BSE
## Growth drivers for GEE Ltd
ICICI Direct expects higher capacity utilisation, expanded production and specialised products to drive growth.

> ICICI Direct said the company was positioned for an earnings recovery driven by capacity expansion, improving utilisation, specialised welding products and opportunities in nuclear power and defence shipbuilding
## Capacity expansion and utilisation
Capacity utilisation improved from 48% in FY25 to 57% in FY26, expected to reach 60% in FY27 and 74% in FY28.

> ICICI Direct identified capacity expansion and better utilisation of existing manufacturing facilities as key drivers of GEE's growth
## Product diversification
GEE expanding into submerged arc welding wires, fluxes and specialised alloy consumables for nuclear and defence applications.

> Currently, around 27, 30% of revenue comes from niche products, with the balance largely comprising commodity products
## Nuclear and defence opportunities
GEE has secured approval from NPCIL for nuclear power segment, supplying welding consumables for Indian Navy platforms.

> GEE has also supplied welding consumables for Indian Navy platforms INS Dunagiri, INS Agray and INS Sanshodhak
## Thane land parcel potential
Thane land parcel could generate over ₹400 crore over five years with potential inflow of ₹40-50 crore in FY27.

> The report also pointed to potential value unlocking from GEE's Thane land parcel. A development agreement could generate more than ₹ 400 crore over five years
## Revenue and profit outlook
ICICI Direct expects revenue to reach ₹614 crore by FY28 with net profit of ₹36 crore, implying 66% profit CAGR.

> Net profit is projected to increase from ₹ 13 crore in FY26 to ₹ 24 crore in FY27 and ₹ 36 crore in FY28
## Key risks
Sharp raw material price increases, competition from domestic and international manufacturers, and pricing pressure on margins.

> Key risks include sharp increases in raw material prices that cannot be passed on to customers, competition from domestic and international manufacturers, and pressure on margins from pricing competition
## Key takeaway

ICICI Direct targets ₹170 for GEE Ltd stock, implying 39% upside from ₹124 after 86% gain in six months.