Shares of ideaForge Technology Ltd. surged as much as 7% on Tuesday, May 5, following a 20% gain on Monday, extending their rally for the sixth consecutive session. According to reports from CNBC TV18, the drone manufacturer stock has declined in only three out of the last 20 trading sessions, with the stock up nearly 30% in just two trading sessions of May. The stock is currently trading 6.7% higher at ₹780.25, having reclaimed its IPO price of ₹672.
ideaForge returned to profitability in the March quarter with a net profit of ₹60 crore and a 7x jump in revenue compared to the same quarter last year. As reported by CNBC TV18, margins stood at 44% during this period. The company also saw a significant improvement in cost structure, with material costs falling to 11% of total topline compared to 67% last year and 51% sequentially.
According to CNBC TV18, a block deal took place in ideaForge on Monday where Societe Generale was the buyer, acquiring 2.43 lakh shares at ₹707.11 apiece. The stock saw significant trading activity with 80 lakh shares changing hands on Tuesday, significantly higher than their 20-day average of 6.1 lakh. At the end of the March quarter, Mutual Funds held a 1% stake in the company, while Foreign Portfolio Investors owned a 0.7% stake.
As reported by CNBC TV18, close to 1.8 lakh small retail shareholders with authorized share capital of up to ₹2 lakh held a 36% stake in the drone manufacturing company. The stock had doubled on its listing day back in July 2023, surging to levels of ₹1,344 compared to its issue price of ₹672. However, the stock continued to decline due to weak results, making an all-time low of ₹301 on April 7 last year, and remains 41% down from its listing-day high.
Brokerage firm IIFL recently upgraded the stock to 'buy' from its earlier rating of 'reduce' and set a revised price target of ₹1,187, implying an upside potential of 95% from last Thursday's closing levels. According to CNBC TV18, the move in May follows the 64% gain the stock saw in April, which turned out to be the best month since its stock market debut in July 2023.
