Waya initiates coverage on Aeroflex Industries Ltd. with a BUY recommendation. Waya expects an upside of 25% in 1 year and sets a target price of ₹250.

Aeroflex Industries is a leading Indian manufacturer of metallic flexible hoses and flow control components used in aerospace, defence, semiconductors, data centres, hydrogen energy and industrial applications. Around 65% of its revenue comes from exports, making it a strong global engineering play.

Aeroflex has strong profitability with EBITDA margins of over 21% and PAT margins of ~14%, which are among the best in its segment. The company is debt-free and is shifting toward higher-value products such as hose assemblies and liquid cooling systems, which support margin expansion.

Waya believes Aeroflex is well-placed for long-term growth, driven by rising demand from data centres, energy transition applications and global customers, along with improving product mix and operating leverage.