surged over 4 per cent to hit a 52-week high on the NSE on Thursday after the company reported a strong rise in quarterly profit and upbeat growth outlook.
The stock climbed to a high of ₹863.80 in early trade. At 10.12 am, it was trading at ₹860.25, compared with the previous close of ₹828.90.
The Murugappa Group company reported a for the quarter ended March 2026 (Q4 FY26), supported by healthy demand across its power systems and industrial businesses.
Brokerage firm Motilal Oswal reiterated a buy rating on the stock with a target price of ₹940, citing strong growth prospects across segments and improved margin outlook.
The brokerage said it marginally revised its earnings estimates upward by 6 per cent for FY27 and 5 per cent for FY28 to factor in better margins in the power systems business and improved balance sheet metrics.
Motilal Oswal expects overall order inflows to post an 11 per cent CAGR over FY26-28, driven by robust demand for transformers and switchgear in the power systems segment across domestic and export markets. In the industrial segment, it expects order inflows to be supported by expansion in motors and railway-related businesses.
The brokerage models a revenue CAGR of 25 per cent over FY26-28 and EBIT margins of 13.9 per cent and 15.1 per cent for FY27 and FY28 respectively, leading to a projected PAT CAGR of 32 per cent over the same period.
It noted that the stock is trading at 81.3x FY27 estimated earnings and 60.7x FY28 estimated earnings. Motilal Oswal said it rolled forward its sum-of-the-parts-based target price to June 2028 and maintained a buy recommendation.
The brokerage assigned a 58x valuation multiple to the power systems business, reflecting the upcoming capacity expansion and strong sector demand, while valuing the industrial systems business at a 10 per cent discount to ABB. It also assigned value to the OSAT business using a discounted cash flow method to capture expected benefits from FY28 onwards.
However, the brokerage flagged risks including a slowdown in transmission and distribution capex, higher commodity prices, weak motor demand and limited OSAT execution experience.