Kotak has ascribed a price target of ₹1,000 on the stock, which implies an upside potential of 24% from Monday’s closing price. This is the fourth price target of ₹1,000 or above for Fractal, from among the eight analysts who have coverage on the stock.
The brokerage has cited the company’s strong positioning to capitalize on accelerating enterprise adoption of artificial intelligence and data analytics, as the key reason behind its thesis.
Fractal Analytics is recognized as a leading pure-play provider of enterprise data, analytics, and AI (DAAI) services. The company is set to benefit from significant long-term market tailwinds and its own established leadership position in the rapidly evolving technology ecosystem, Kotak stated in its note.
Kotak Institutional Equities expects Fractal’s US Dollar revenue to grow at a Compounded Annual Growth Rate (CAGR) of 16.6% over financial year 2026-2029 as it expects the company’s top-line growth is expected to accelerate significantly over financial year 2028 and 2029 as enterprise AI adoption scales rapidly across global operations.
Operating leverage combined with a reduction in absolute ESOP (Employee Stock Option Plan) expenses is projected to drive a 300 basis points (bps) expansion in EBITDA margins over the next three years, the brokerage said.
Aided by margin expansion and revenue acceleration, Fractal is expected to deliver a 36% adjusted PAT (Profit After Tax) CAGR between financial year 2026-2029, Kotak projected in its note.Eight analysts have coverage on Fractal Analytics. Five of them have a “buy” rating, two say “hold” and one has a “sell” rating.
Shares of Fractal Analytics are trading 4% higher on Tuesday at ₹837.3. Despite this gain, shares of Fractal are trading below their issue price of ₹900 apiece.
