Nuvama Wealth Management has initiated research coverage on Aimtron Electronics with a Buy rating and a target price of Rs 2,036 per share, representing approximately 47% upside potential from prevailing market levels.

The brokerage firm expects the company to deliver robust growth in the coming period, citing several key drivers behind its positive outlook.

A central factor in Nuvama's thesis is Aimtron Electronics' strategic shift toward high-margin Electronic System Design and Manufacturing (ESDM) solutions. ESDM encompasses the design, manufacture, and assembly of electronic components and systems, a segment that has been gaining traction in India as the government continues to promote domestic electronics manufacturing under initiatives such as the Production Linked Incentive (PLI) scheme. India's electronics manufacturing sector has been expanding as global OEMs increasingly diversify supply chains beyond China under a broader "China Plus One" strategy, creating opportunities for domestic EMS and ESDM players to capture a larger share of outsourced manufacturing.

Nuvama also highlighted the company's expanding order book as a positive indicator of sustained revenue visibility. An expanding order book typically signals growing demand from existing and new clients across end-user industries.

Capacity additions form another pillar of the brokerage's bullish stance. Aimtron Electronics has been investing in scaling up its manufacturing infrastructure, which is expected to support higher production volumes and improved operational efficiency as utilization rates increase.

The company's global expansion strategy, particularly through its acquisition in the United States, was cited as an additional growth catalyst. The US acquisition is expected to provide Aimtron with access to international markets, a broader client base, and potential synergies in design and engineering services. Establishing a manufacturing or design presence in the US also positions Aimtron to serve clients seeking regionally diversified production, a growing priority for companies reconfiguring global supply chains.

Aimtron Electronics operates as an electronic manufacturing services (EMS) provider, offering services that include printed circuit board (PCB) assembly, box build assemblies, and system integration. The company serves clients across sectors such as automotive, industrial, healthcare, and consumer electronics—end markets where embedded electronics content has been steadily increasing.

Nuvama Wealth Management is a Mumbai-based financial services firm offering broking, wealth management, and investment advisory services.

Source: Economic Times Markets