Aeroflex Industries shares surge 18% - What's behind the stock rally? What's next for the stock?
Aeroflex Industries shares surged 18% in intraday trade on the BSE on Thursday, 29 October, with a strong 13-fold jump in volume. Aeroflex Industries share price opened at ₹533.30 against its previous close of ₹491.65 and jumped 18% to an intraday high of ₹579, looking set to extend gains for the third consecutive session.
The stock witnessed strong buying interest on Thursday, a day after reporting its September quarter (Q2FY27) results.
In an exchange filing on 28 October, the company said its consolidated revenue from operations for the September quarter surged 87% year-on-year (YoY) to ₹207.36 crore. In the same quarter last year, the company's revenue was ₹110.87 crore.
Net profit jumped 157% YoY to ₹36.56 crore in Q2FY27 compared to ₹14.23 crore in Q2FY26.
Additionally, the company announced that its board gave in-principle approval to the proposal for amalgamation of Hyd-Air Engineering Private Limited, a wholly owned subsidiary of the company, with it.
The board also approved the re-designation of Drashti Bhil as Chief Financial Officer (CFO) and key managerial personnel (KMP) of the company with effect from 28 November 2026, for three years.
Aeroflex Industries has delivered multibagger returns of 200% year-to-date in 2026, while over the last one year, it has surged 210%, hitting a 52-week high of ₹613.50 on 14 October and a 52-week low of ₹157.85 on 23 January this year.
According to Aditya Thukral, founder and analyst at AT Research and Risk Managers, Aeroflex Industries broke the uptrend structure of higher highs and higher lows. Though the stock is now trading above all the moving averages with positive crossovers, the continuation of the larger uptrend seems fishy for now.
"The short-term momentum remains positive, and its continuation could be possible, but the risk-reward is not favourable at this point for fresh buying as the stock is trading within the 10% territory from the all-time highs," said Thukral.
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"It should form a base or a consolidation before moving higher, which would be a better signal for fresh longs with defined stop losses. Till then, the stock is anticipated to trade within the territory of ₹480 and ₹600," Thukral said.
"The stock is in no trading zone for now. However, the existing shareholders should try to book profits near the all-time high of ₹613.70. Fresh buying is not suggested owing to the absence of a favourable risk-reward," Thukral added.
Vipin Kumar, AVP-Research at Globe Capital Market, pointed out that the stock continues to demonstrate strong bullish momentum, forming a clear sequence of higher highs and higher lows while holding firmly above both its short- and long-term moving averages.
"Considering this robust chart structure, we recommend holding existing long positions and accumulating fresh on dips around the ₹520- ₹500 zone for a medium-term view, targeting ₹650," said Kumar.
Shitij Gandhi, AVP - Equity Technical Research at SMC Global Securities, underscored that Aeroflex Enterprises is showing signs of a potential bullish reversal on the daily chart, following a recovery from the crucial ₹110– ₹112 support zone, where the stock has formed a possible double-bottom pattern.
"The stock is trading near the ₹132 level, comfortably above its 100-day and 200-day moving averages, indicating improving underlying strength. However, the descending trendline connecting previous swing highs continues to act as a major hurdle around the ₹138–140 zone," said Gandhi.
"Immediate support is placed at ₹125 followed by ₹112. A sustained breakout above ₹140 could confirm a trend reversal and open the door for an upside move. Overall, the near-term outlook remains cautiously positive for the stock," Gandhi said.
Gaurav Arora, Head of Research at SAHI, said Aeroflex Industries has formed a reverse symmetrical triangle pattern, with resistance pegged around ₹614.
"The stock has recovered well from the lower end of this range and could now test this resistance level again. A notable volume spike has also been observed, adding weight to the move. The broader setup suggests the stock is building up for a potential test of the ₹614 mark," said Arora.
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HomeMarketsStock MarketsAeroflex Industries shares surge 18% - What's behind the stock rally? What's next for the stock?
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