ICICI Securities has issued a buy rating on Ajax Engineering with a target price of ₹770 in its research report dated February 15, 2026. According to the broker's analysis, the recommendation comes despite current weakness in the infrastructure sector, where construction equipment companies are facing headwinds due to contractors delaying projects due to lack of cash flow from states, particularly due to elections in some states.
Ajax Engineering reported a 31% volume decline (similar to industry-wide trends) with no price hikes implemented during the period. As reported by ICICI Securities, the low demand has deterred the industry from raising prices, resulting in muted margins across the sector. However, green shoots are visible in February 2026 based on volume data from Vahan, with sectors like solar, irrigation and rural roads driving demand.
The broker expects Ajax Engineering to implement meaningful price hikes in FY27, which could help alleviate the current margin pressure. According to ICICI Securities, the resolving of cash flow issues could further alleviate stress on the sector. The company's ability to implement price increases is seen as a key factor in improving profitability and achieving the target price of ₹770.
