INDO-MIM shares hit 10% upper circuit, extend rise to 3rd day as HDFC Securities says ‘Buy’, sees up to…

Reports coming in for today mention that Indo-MIM shares hit the 10 percent upper circuit limit on Monday, extending their upside for the third straight session after HDFC Securities initiated coverage on the stock with a 'Buy' rating and set a price target that implies an upside of over 33 percent.

The stock settled at Rs 1,161.45 per share on the NSE, up 10 percent, which is its highest permissible trading limit for the session.

Since September 17, the stock has advanced more than 21 percent.

HDFC Securities has set a price target of Rs 1,407 per share, implying an upside of more than 33 percent from Friday's closing level.

The brokerage stated Indo-MIM is the world's largest manufacturer of precision engineering components using metal injection moulding (MIM) technology, with a market share of around 7 percent in CY25.

Apart from MIM, the firm uses manufacturing technologies including investment casting, precision machining, ceramic injection moulding and metal 3D printing, it stated.

"Over the years, IML has well-entrenched itself into the manufacturing innovation ecosystem in the US and is enjoying leading market share with top US MNCs," the brokerage stated.

HDFC Securities stated the firm's diversified manufacturing capabilities position it as a one-stop advanced manufacturing partner for global original equipment manufacturers requiring complex, high-precision, miniaturised and mission-critical components.

It stated next-generation areas such as humanoids, satellite internet, space travel, aerospace engineering, data centres and automation equipment for mobile lines could provide significant expansion opportunities for the firm over the next few years.

The brokerage additionally stated Indo-MIM would be a key beneficiary of the ex-China supply chain for US manufacturing, including large capital expenditure by the US Department of Defence to strengthen national security, including drone programmes.

"IML is well-insulated against tariff frictions as it has onsite manufacturing, and the only constraints to expansion should be how quickly it can bring more capacities to capture the expansion upside," it stated.

HDFC Securities stated high share of client wallet, stringent entry barriers in innovation programmes and onsite presence were difficult to replicate and could lead to a re-rating of the firm's valuation multiple over the next few years.

The brokerage initiated coverage on Indo-MIM with a 'Buy' rating, based on 54 times September 2028 estimated earnings per share.