Brokerage firm Ventura Securities has initiated coverage on Anlon Technology with a “BUY” rating and a 24-month target price of INR 766, implying a potential upside of 70% from the current market price of INR 450.
The bullish stance is underpinned by Anlon’s strong order book, strategic OEM partnerships, and multi-sector growth drivers that position it as a niche but rapidly scaling player in India’s mission-critical safety and mechanization sector.
Revenues to Triple, Profits to Quadruple
Ventura projects Anlon Technology’s revenues to grow from INR 50.2 crore in FY25 to INR 145.5 crore by FY28E, clocking a 42.5% CAGR. Profitability is expected to expand even faster, with net profit rising from INR 6.2 crore in FY25 to INR 22.3 crore in FY28E, a 53% CAGR.
Margins are set to improve as well: EBITDA margins expanding from 19.2% to 22.8% over the forecast horizon, supported by localized assembly, spares distribution, and recurring AMC contracts.
| Metric | FY25E | FY28E | CAGR / Change |
|---|---|---|---|
| Revenue | 50.2 | 145.5 | 42.5% |
| Net Profit | 6.2 | 22.3 | 53% |
| EBITDA Margin (%) | 19.2 | 22.8 | +360 bps |
| RoE (%) | 10.5 | 19.5 | ↑ |
| RoIC (%) | 14.5 | 25.2 | ↑ |
Order Book and Sector Tailwinds
As of FY25, Anlon Technology boasts an order book of INR 76.7 crore, alongside a INR 200 crore pipeline of tenders expected in H2FY26. This translates to 4x revenue visibility versus FY25 levels.
With India’s civil aviation sector targeting over 220 airports by 2035, demand for Aircraft Rescue & Firefighting Vehicles (ARFFs), runway sweepers, and rubber removal machines is poised to accelerate. The company is also expanding into municipal mechanization, petrochemical fire safety, and defense-grade runway solutions — all of which remain significantly underpenetrated markets.
Segment-Wise Revenue Outlook
Ventura sees revenue diversification as a key driver, with non-firefighting verticals growing faster than the legacy aviation segment:
| Segment | FY25E | FY28E | CAGR |
|---|---|---|---|
| Firefighting Equipment | 41 | 87 | 28.5% |
| Runway Rubber Removal Machines | 6 | 22 | 54% |
| Sweepers (Runway + Commercial) | 1.5 | 22 | 145% |
| Others (Rescue Ladders, DARK kit) | 1.5 | 14 | 111% |
| Total | 50.2 | 145.5 | 42.5% |
This shift highlights Anlon Technology’s evolution from an aviation-focused supplier into a multi-sector safety and mechanization company.
Strategic OEM Tie-Ups
ATSL’s moat lies in its exclusive partnerships with global OEMs:
- Rosenbauer (Austria): Market leader in ARFFs with 85–88% share.
- Bucher Municipal (Switzerland): Key partner for runway and commercial sweepers.
- Bridgehill (Norway): Specialist in fire blankets for EVs and chemical fires.
These alliances not only provide cutting-edge technology but also strengthen Anlon’s competitive positioning in government and private tenders.
Valuation Scenarios
Ventura values ATSL at 21.5x FY28E EPS, arriving at a fair value target of INR 766.
- Bull Case: INR 1,016/share (125% upside) — revenue at INR 153 Cr, PAT margins 15%.
- Base Case: INR 766/share (70% upside) — revenue at INR 145 Cr, PAT margins 17%.
- Bear Case: INR 673/share (50% upside) — revenue at INR 138 Cr, PAT margins 16%.
At CMP INR 450, ATSL trades at 29.2x FY25E P/E, a discount to capital goods peers like Jyoti CNC (43x) and Azad Engineering (82x). By FY28E, valuation is expected to de-rate to 12x, making earnings growth the key re-rating driver.
Anlon Technology Post IPO Performance
Anlon Technology launched its initial public offering (IPO) in early January 2023, raising approximately INR 15 crore through a total fresh issue. The IPO witnessed overwhelming investor interest, being subscribed nearly 398 times. On debut, the stock delivered stellar listing gains of 163.65%.
Following the listing, the company’s shares continued their upward trajectory, reaching an all-time high of INR 576 per share in July 2024—representing a remarkable 476% return over the issue price of INR 100. Currently, the stock is trading around INR 450 per share, reflecting a correction of nearly 22% from its peak.
SWOT Analysis
- Strengths: Diversified revenue streams, high entry barriers, OEM tie-ups, strong order visibility.
- Weaknesses: Heavy reliance on government contracts; limited institutional holding (~5%).
- Opportunities: Airport expansion, urban mechanization (only ~200 of 4,700 municipalities mechanized), petrochemical fire regulations, defense modernization.
- Threats: Procurement policy changes, project execution delays, OEM dependency.
Bottom Line
Ventura’s coverage underscores Anlon Technology’s transition from a niche aviation equipment player to a diversified, high-growth safety solutions provider. With a projected 70% upside in two years, expanding order book, and multi-sector tailwinds, ATSL represents a structural growth story in India’s infrastructure and safety modernization drive.
If execution stays on track, Ventura believes Anlon could deliver multi-bagger returns, re-rating itself alongside larger capital goods peers.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.