Netweb Technologies Share Price Drops 37% Over Last 6 Months – Check Details
Netweb Technologies
Netweb Technologies Share Price Drops 37% in 6 Months: Analysts See Bullish Signs Amid AI and HPC Growth
Netweb Technologies, a key player in the field of high-performance computing (HPC) and artificial intelligence (AI), has experienced a sharp 37% decline in its share price over the past six months.
This has raised concerns among some investors and market watchers. However, despite the recent price drop, analysts from leading brokerage firms are optimistic about the company’s long-term growth prospects, largely due to its strategic focus on emerging technologies like AI and HPC.
These technologies are expected to see significant growth in the coming years, and Netweb is well-positioned to capitalize on this expansion.
Analysts Turn Bullish on Netweb Technologies Despite Recent Decline
While the company’s stock has faced significant headwinds, analysts are not deterred by short-term price fluctuations.
In fact, there is growing optimism about the company’s future performance, particularly as it continues to expand its AI and HPC capabilities.
Equirus Securities has recently upgraded its rating for Netweb Technologies from ‘Add’ to ‘Buy,’ indicating confidence in the company’s future growth potential.
Equirus’ move comes as part of a broader trend where analysts are re-assessing the stock, with a focus on its longer-term prospects rather than just recent price movements.
In a similar vein, IIFL Capital has maintained its ‘Add’ rating on the stock, but with a revised target price of Rs 2,130.
This target price indicates a potential upside from the current levels, reflecting analysts’ belief that Netweb Technologies is undervalued at its present price.
This positive outlook stems from the growing demand for AI-powered solutions and the company’s increasing market share in this space.
Mixed Signals from Technical Analysis: Can the Stock Rebound?
Despite the positive outlook from analysts, technical indicators suggest a more cautious approach in the short term.
Netweb Technologies’ share price is currently trading within a defined range of Rs 1,400 to Rs 1,800, a zone where the stock has faced repeated resistance over the past few months.
According to Om Mehra of Samco Securities, the stock is currently positioned above its 9-day Exponential Moving Average (EMA), but below the 20-day EMA. This scenario indicates mixed signals from a technical standpoint.
Mehra explains, “The stock is in a consolidation phase, but a decisive move beyond this range could trigger bullish momentum and possibly lead to a breakout.
However, if the stock fails to maintain momentum, it could face further downward pressure.” Mehra further adds that if the stock breaks above the short-term resistance level of Rs 1,550, it could signal the beginning of an upward trend.
However, he also cautions that if the stock cannot hold levels above Rs 1,350, the selling pressure could intensify, leading to a corrective phase.
The Importance of Support Zones: Religare’s Viewpoint
Ajit Mishra from Religare Broking provides a more optimistic short-term view. According to Mishra, the stock has been hovering around key support zones and showing signs of sideways consolidation with higher lows.
This pattern suggests that the stock may be building a strong base, which could eventually lead to an upward breakout.
“The Rs 1,290 level is acting as a strong support for the stock, and if it can hold above this level, the stock could see a rise to Rs 1,800 or even Rs 1,820 in the near term,” Mishra states.
Religare’s analysis points to a positive near-term outlook, especially as the stock is forming a solid foundation at current levels.
This suggests that once the stock manages to break through its immediate resistance zones, it could see a substantial price movement in the coming months.
Investors and analysts are hopeful that Netweb Technologies will continue its path toward recovery, driven by the underlying strength of its AI and HPC businesses.
Netweb’s Expanding AI and HPC Business: Key Drivers of Growth
One of the primary reasons for analysts’ optimism about Netweb Technologies is its robust AI business, which has emerged as a key driver of revenue and future growth.
Over the past year, AI has contributed significantly to the company’s overall revenue, accounting for 14.7% of total revenue, up from just 8% a year ago.
This growth trajectory is particularly impressive considering that AI is still a relatively nascent market in India and globally. Netweb’s success in this space is likely to accelerate further as demand for AI-driven solutions continues to rise.
Industry experts are predicting that the AI market will grow exponentially in the coming years, driven by increased investments from both governments and private companies.
Netweb Technologies is well-positioned to benefit from this trend, as its AI solutions are already gaining traction across various sectors, including finance, healthcare, and manufacturing.
Analysts expect the company’s AI revenue share to grow even further, with projections indicating it could reach 20% by the end of FY25. This growth is expected to help offset the negative impact of the recent stock price decline.
In addition to AI, Netweb Technologies has also seen increasing demand for its high-performance computing (HPC) solutions.
As businesses and organizations look to process vast amounts of data more efficiently, the demand for HPC systems has surged. Netweb’s expertise in this area has positioned it as a leading player in the HPC space, both domestically and internationally.
The company’s export revenue now accounts for 9% of total revenues, which indicates growing international demand for its solutions. This expanding global footprint further supports analysts’ bullish outlook on the company.
Equirus’ Target Price and the Future Outlook for Netweb Technologies
Equirus Securities has set a target price of Rs 2,130 for Netweb Technologies, reflecting its belief that the stock remains undervalued.
While the company faces short-term challenges, analysts are confident that the company’s fundamentals—especially its leadership in AI and HPC—will enable it to recover and grow in the long term.
Given the expected rise in AI investments and increasing global demand for high-performance computing, Netweb Technologies is well-placed to benefit from these trends.
Final Remarks: A Stock to Watch
Despite the challenges faced by Netweb Technologies in the short term, analysts are maintaining a positive outlook due to the company’s growing presence in the AI and HPC markets.
The stock’s recent decline offers a potential opportunity for investors, particularly those with a long-term perspective.
With strategic investments in AI and HPC, a positive technical outlook, and a solid foundation in international markets, Netweb Technologies remains an attractive option for investors looking to capitalize on the future growth of these cutting-edge technologies.
In summary, while the stock may experience some volatility in the near term, its strong fundamentals, along with the promising growth prospects in AI and HPC, make Netweb Technologies a stock to watch closely in the coming months.
