AI, Smallcap with Data Center theme Multibagger shares with multibagger in 6 months. Do you have to buy?

NetWeb Technologies has more than doubled in just six months, with 115% as a series of order profits, the digital push of the government and the story of the data center of India have drawn renewed buying interest. The sharp movement has now let investors ask if the rally has more legs.

Brokers believe that the answer lies in the structural digital infrastructure shift from India. Increasing internet traffic, acceptance of artificial intelligence (AI) and policy support for data localization is expected to stimulate capacity expansion, creating a multi -year opportunity for companies such as Netweb.

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Volgens Ventura Securities zou de Indiase Compute Infrastructure Market zich scherp kunnen uitbreiden met FY28, waarbij AI-infrastructuur alleen al ongeveer Rs 8.700 crore bereikt bij een CAGR van 29,5% CAGR, Private Cloud en HyperConverged Infrastructure (HCI) Rs 14.100 Crore bij een 28,5% CAGR, en high-performance Computing (HPC) Computing (HPC) Computing (HPC) Computing (HPC) Computing (HPC) Computing (HPC) Computing (HPC) Computing (HPC) Computing (HPC) Computing (HPC) Computing (HPC) 2,430 crore. For Netweb, Ventura expects income to grow with a CAGR from 36.7% to RS 2,938 Crore by FY28, led by a strong traction in AI systems, workstations for companies and cloud-related services. AI Systems and Enterprise workstations are expected to be a CAGR from 50.9% to RS 588 Crore bells, while network switches and powerful storage can grow by more than 60% and 14% respectively.
A lot of growth engines include the launch of a new SMT facility in May 2024 and develops with Nvidia AI GPU systems with Skylus.ai and ‘Make in India’ servers.

The AI ​​golf is seen as an important driver of this trend. AI applications require enormous computing power and real-time data processing, so that the demand for data centers with powerful infrastructure is fueled. “Chatgpt consumes 10x more electricity per query compared to a Google search, with the emphasis on the scale required for AI,” noted International Brokerage Nomura, adding that digital India and data localization policy will probably accelerate investments in this space.Read more: Cheers on premiumization! These 4 alcohol stocks can meet up to 18%. Do you have one?

Adding to optimism is the recent order from Netweb, where the most recent RS 450 Crore is worth on September 21 to use AI infrastructure facilities with the help of its Tyrone GPU-accelerated systems, which will be performed by FY25-26. Earlier this month, the company took an RS 1,734 CRORE contract to deliver Nvidia-driven servers under the Indiaai mission.

Important risks

The dependence on the company of imported components makes industry vulnerable to global supply chain disruptions, geopolitical tensions and sourcing restrictions. : The sector is governed by complex environmental, data and competitive assets; Non-compliance can lead to fines, operational disruptions or reputation damage.

Technically, NetWeb today tested a new high of RS 3,545.80. The share is broken by RS 3,100 beyond its earlier resistance and is now traded in a bullish higher soil pattern. “Support is seen on RS 3,100 and resistance on RS 3,800. The trend remains positive,” Anuj Gupta of YA Wealth told ETmarkets.

Ventura had a target of RS 2,805 coupled just over three months ago when the share was traded on RS 1,723 on 19 June. Since then it has more than doubled and it has been a stunning rally of 104% to terminate the session of 22 September on RS 3,530, higher by 8% and an increase of 24% in the last 4 trade sessions.

((Indemnification: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)