ICICI Direct has initiated coverage on GEE Ltd with a Buy rating and target price of ₹170, implying 37% upside from the current market price of ₹124. According to reports from LiveMint, the brokerage expects the welding consumables manufacturer to benefit from capacity expansion, improved utilisation, and specialised product development. The company's capacity utilisation has already improved from 48% in FY25 to 57% in FY26, with projections to reach 60% in FY27 and 74% in FY28. GEE Limited, formerly known as General Electrodes and Equipment Limited, was incorporated in 1960 and has over 65 years of experience in the welding consumables industry. The company operates manufacturing facilities in Maharashtra and West Bengal, with an installed capacity of 59,075 MTPA, and is expanding its product portfolio.
ICICI Direct projects significant growth in GEE Ltd's financial performance over the next two years. As reported by LiveMint, the brokerage expects revenue to rise from ₹369 crore in FY26 to ₹493 crore in FY27 and ₹614 crore in FY28, representing a compound annual growth rate (CAGR) of approximately 29% over FY26-FY28. EBITDA is projected to increase from ₹33 crore in FY26 to ₹61 crore in FY28, with margins improving from 9% in FY26 to 10% in FY28. Net profit is estimated to grow from ₹13 crore in FY26 to ₹24 crore in FY27 and ₹36 crore in FY28, implying a profit CAGR of approximately 66% over the two-year period. The improvement is expected to be driven by higher capacity utilization, operating leverage from incremental capacity, and a gradual increase in contribution from specialized products, including flux-cored wires and submerged arc welding consumables.
According to LiveMint reports, GEE Ltd has demonstrated strong market performance with the stock rising 3.5% to ₹126.65 in today's trading session on the BSE. The small-cap stock has shown impressive momentum, gaining 8% over the past week and three months, surging 86% in five months, and advancing 38% over the past year. The stock had touched a 52-week high of ₹143.05 in September 2026 and a 52-week low of ₹53.61 in March 2026. The company's expanded capacity is estimated to support revenue potential of around ₹850 crore at a mature utilisation level, while planned capex of ₹30-40 crore over the next 3-4 years, including ₹5-10 crore in FY27, is expected to support capacity enhancement and operational efficiencies.
As reported by LiveMint, ICICI Direct identified several key growth drivers for GEE Ltd. The company is expanding beyond conventional welding electrodes and wires into submerged arc welding (SAW) wires and fluxes, flux-cored wires, stainless-steel wires and specialised alloy consumables. Currently, around 27-30% of revenue comes from niche products, with the balance comprising commodity products. The brokerage highlighted the company's entry into nuclear power applications through approval from the Nuclear Power Corporation of India (NPCIL), where management expects nuclear-related business to contribute around 10% of revenue over time. Additionally, GEE has supplied welding consumables for Indian Navy platforms and expects shipbuilding-related opportunities to contribute around 3-5% of revenue. The company has established customer approvals and relationships with leading industrial and infrastructure companies, including DRDO, BHEL, L&T and ADNOC, while its products cater to both domestic and international markets.
According to LiveMint reports, ICICI Direct pointed to potential value unlocking from GEE's Thane land parcel. A development agreement could generate more than ₹400 crore over five years, based on indicative realisations, with a potential inflow of ₹40-50 crore in FY27. The actual proceeds would depend on project execution, sales and associated costs. The company plans capital expenditure of ₹30-40 crore over the next three to four years, including ₹5-10 crore in FY27, to enhance capacity and improve operational efficiency. GEE's return ratios are expected to improve steadily, supported by a recovery in profitability, with ROCE expanding from 10.7% in FY26 to 16.5% in FY28E and ROE improving from 6.0% to 13.0% over the same period.
