Motilal Oswal is sticking with its "buy" call on GNG Electronics, even after the stock dropped nearly 20%, mainly because of a broader slump in AI and memory-related shares, not anything wrong with the company itself.
They've set a target price of ₹840, showing confidence in GNG's fundamentals.
Motilal Oswal forecasts strong GNG growth
GNG is pushing through ongoing memory shortages by ramping up sales and keeping refurbished laptop prices at just 30% to 35% of new ones, making them way more affordable for buyers.
Even though supply issues might last until 2028, Motilal Oswal expects strong growth as more people look for budget-friendly tech and their distribution network expands.
Financially, big jumps are expected in revenue and profit over the next few years, though elevated inventory and channel credit will keep working capital high along the way.