Choice International Equities has initiated coverage of Rishabh Instruments with a 'Buy' rating and a target price of ₹830 per share, implying an upside potential of 22.5%. According to reports from LiveMint, the domestic brokerage firm expects the upward momentum to continue, backed by several structural tailwinds. The stock has been scaling record highs this year and the brokerage anticipates this trend to continue with multiple growth drivers supporting the rally.
The company has successfully diversified beyond its core Electrical and Electronic Instruments (EEI) business over recent years, expanding into new product segments that have begun to yield results. As reported by LiveMint, the EEI business remains Rishabh Instruments' primary growth driver, accounting for 69% of the company's FY26 revenue. The newer products now contribute revenue equivalent to 10% of the EEI business, highlighting the successful commercialization of research and development investments.
Choice International Equities highlighted structural tailwinds from electrification, renewable energy integration, industrial digitalization, data centers, and energy-efficiency initiatives that are expected to support demand for advanced measurement and automation solutions. According to the brokerage, medium-voltage current transformers (CTs), electronic manufacturing services (EMS) capabilities, and solar string inverters are expected to drive product premiumization and strengthen the company's presence in higher-value applications.
The brokerage highlighted opportunities in the company's High-Pressure Die-Casting (HPDC) business, which serves industrial automation, electrical engineering, heating, ventilation and air-conditioning (HVAC), and energy infrastructure applications. As reported by LiveMint, the brokerage expects new deals to ramp up over the next six to 12 months, supporting a gradual turnaround in the HPDC business. A stronger order mix and improving demand across non-automotive end markets could further aid the recovery.
The shares have extended their winning run this year, rallying 70% so far to reach ₹677.90 apiece after delivering a return of 18.52% in 2025. According to LiveMint, the stock rebounded in March 2025 and has continued its upward trajectory since then, surging 222% from its previous lows. The stock closed in the green in five of the past six months, with April recording the biggest monthly gain of 35%.
