Aequs: Aerospace Growth Drives Bullish Momentum

Aequs Ltd. is showing signs of a technical recovery, supported by strong aerospace business growth and a sizeable order book. However, losses and weak consumer-segment profitability remain key concerns. Business & Financial Highlights – Q2/H1 FY27 - Q2 revenue increased 45% YoY to ₹409.1 crore. - Q2 EBITDA declined 45% to ₹24.5 crore; EBITDA margin stood at 6% versus 16% last year. - Net loss widened to ₹52.2 crore from ₹20.6 crore. - Aerospace revenue grew 44% YoY to ₹351.4 crore, with segment EBITDA up 24%. - Consumer revenue grew 52%, but the segment continued to report an EBITDA loss of ₹40.1 crore. - Aerospace order book stood at USD 1.096 billion, up 9% QoQ. - New Safran agreements and the long-term A320 aircraft wheels contract strengthen future growth visibility. Technical Analysis – Daily Chart At around ₹236.20, the stock has gained 4.33% and moved above its 20-day moving average near ₹231.83. RSI at 50.62 is recovering above its average, while MACD shows an early bullish crossover with a positive histogram. The rising trendline also supports the recovery. Trading Strategy – Swing - Buy: ₹239–242, only after a sustained breakout above ₹239. - Stop Loss: ₹226 - Target 1: ₹250 - Target 2: ₹260 - Target 3: ₹270 Support: ₹231–228, followed by ₹220. Resistance: ₹239–242, followed by ₹250 and ₹260. View: Cautiously bullish above ₹239. A sustained breakout may open the way towards ₹250–260. Avoid fresh entry if the stock fails to hold ₹228. Key Risk: Weak consumer-segment profitability, negative operating cash flow and rising debt require monitoring. The aerospace order book is a positive long-term trigger, but execution and margin recovery remain crucial. Disclaimer: Educational analysis only, not a recommendation to buy or sell. Trade with disciplined position sizing and risk management.