Shares of Dee Development Engineers Ltd have surged as much as 215 per cent in the last four months, when the stock hit its 52-week low of Rs 183.35. The stock soared to its 52-week high at Rs 577 on Tuesday, May 26 and settled at Rs 566 on Wednesday, commanding a total market capitalization marginally shy of Rs 4,000 crore. However, brokerage firm Mirae Asset Sharekhan remains positive on it.

Mirae Asset Sharekhan has retained a positive view on DEE Development Engineers and revised its price target to Rs 650, citing strong execution, a healthy order book and demand visibility across energy infrastructure segments. The brokerage said revenue in the reported period rose 26 per cent, led by execution of oil and gas orders, though margins fell 448 basis points to 17.6 per cent because of labour code charges and a higher base.

The company’s order book stood at Rs 1,940 crore, with exposure across oil and gas at Rs 900 crore and power at Rs 1,200 crore, while FY26 order inflows were Rs 1,870 crore. Management has reiterated guidance for revenue of Rs 1,500 crore, margins of more than 19% and order inflows of Rs 2,000 crore.

The report said DEE is emerging as a specialised energy infrastructure player, supported by tailwinds in HRSG, thermal and oil and gas solutions. It noted that HRSG piping remains a niche global segment with limited qualified vendors, which gives the company pricing power and long-term visibility.

DEE also highlighted demand visibility from GE Vernova, Nooter/Eriksen, Siemens and other global OEMs amid rising gas turbine and power infrastructure demand linked to AI data centres and global electricity shortages. In India, thermal power expansion, nuclear opportunities, refinery investments and fertiliser projects are seen supporting growth.

For FY26, the brokerage said revenue rose 38 per cent, Ebitda increased 53 per cent and net profit grew 77 per cent. It said the new 30,000 MTPA Anjar facility, India’s first seamless pipe plant, and a capex cycle that is now easing should support operating leverage.

Mirae Asset Sharekhan expects revenue and net profit CAGR of 26% and 55% over FY2026-FY2028. It said the stock trades at 27x and 19x FY2027E and FY2028E EPS at the current market price. Key risks include a downturn in oil and gas or power, international exposure, competition and raw material volatility.