Multibagger In Making? THIS SmallCap IT Hardware Stock Soars 45% In 2026; Can It Rally Another 43%? Check TP

IT hardware stock GNG Electronics is expected to witness strong upside in the coming months, driven by a favourable business mix, operating leverage, and robust profit growth, according to experts. The company may also benefit from stronger distribution, higher procurement volumes, and its competitive positioning in the refurbished IT hardware market.

GNG Electronics share price has delivered close to 45% returns since the beginning of the year 2026 and is poised for strong upside in the coming months, indicated Motilal Oswal in its latest report.

GNG Electronics Share Price Outlook

GNG Electronics is a scaled, B2B-focused global refurbishment platform for enterprise IT hardware, operating in more than 46 countries. Additionally, widening arbitrage, increased enterprise acceptance and a gradual shift towards organised players would benefit the company.

Industry tailwinds remain favourable, led by widening price arbitrage compared to new devices, increasing enterprise acceptance of refurbished hardware, and a gradual shift toward organised players.

"We expect GNG Electronics to deliver Revenue/EBITDA/PAT CAGR of ~26%/~31%/~36% over FY26-28E, driven by volume growth and network expansion. EBITDA margins are expected to improve ~90bp to ~11.3%, supported by favorable mix and operating leverage, while lower borrowing costs support stronger PAT growth," read Motilal Oswal's report released on Friday, May 22.

GNG Electronics Share Price Recommendation

The brokerage initiated a 'Buy' rating on GNG Electronics stock on the BSE, with a target price of Rs 635 per share. "We initiate coverage with a BUY rating and a TP of INR635, based on ~30x FY28E EPS (~22x EV/EBITDA), implying ~44% upside, supported by strong earnings and improving capital efficiency," as per the report.

GNG Electronics Share Outlook: Key Risks And Concerns

Despite operational advantage, GNG Electronics has a meaningful exposure to a single geography as its 66.7% FY25 revenue was routed through the UAE subsidiary. Higher inventory and receivables, and reliance on external funding can also impact its business, as per the brokerage report.

GNG Electronics Share Price Trend

The stock was trading 2.95% higher at Rs 455.95 per share on BSE at 11:44 am with a market capitalisation of Rs 5,194.93 crore on Friday. The stock had touched an intraday high of Rs 464.65 per share and an intraday low of Rs 448.50 per share. It has delivered nearly 45% returns year to date (YTD) and around 24% returns in three months.

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