From mint · Pranati Deva · · 1m 30s
ICICI Direct targets 39% upside for GEE Ltd stock
ICICI Direct sees 39% upside for GEE Ltd stock despite 86% surge in 6 months.
In brief
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 after 86% gain in six months. Originally reported by mint.
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”
The headline
ICICI Direct targets ₹170 for GEE Ltd stock, implying 39% upside from ₹124 after 86% gain in six months.
