Multibagger stock Diamond Power hits record high despite stock market crash. InCred sees 28% more upside

Multibagger Stock: Diamond Power Infrastructure share price surged 6.5% to hit its record high of ₹240 per share on BSE despite weakness in Dalal Street. It has now jumped 107% from its 52-week low of ₹115.80, hit in February 2026.

Indian stock market benchmark indices Sensex and Nifty 50 fell around a percent each after fresh US strikes on Iran reignited geopolitical tensions. The benchmark BSE Sensex fell more than 600 points, while the Nifty 50 declined nearly 0.8% to slip below the 24,200 level.

The multibagger cable and conductor manufacturer has emerged as one of the standout performers in the infrastructure space, with investors betting on a strong revival in earnings and capacity utilisation. The rally also comes after InCred Equities initiated coverage on the stock with an 'ADD' rating and a target price of ₹300, implying an upside of about 28% from its current market price of ₹225.

Diamond Power stock has risen 13% in 1 week, 19% in 1 month, 76% in 3 months, 69% in 6 months, and 60% in the last 1 year. However, in the long term ,the scrip has given multibagger returns, rallying 2670% in 5 years.

Why is InCred bullish?

According to InCred, Diamond Power offers a rare combination of an underutilised manufacturing base, favourable industry tailwinds and limited capital expenditure requirements, positioning it for a sharp earnings expansion over the next few years.

"DIACABS trades at attractive valuation for a C&W player, with huge headroom to scale. Initiate coverage on it with a high-conviction ADD rating & ₹300 TP," InCred said in its initiation report.

InCred believes the biggest opportunity for Diamond Power lies in monetising assets that are already in place rather than undertaking expensive expansion. The brokerage noted that the company operates India's largest single-location, fully backward-integrated cables and conductors manufacturing campus in Vadodara, which is currently running at only 25-30% utilisation. At full utilisation, management estimates the existing facility can generate around ₹14,100 crore in annual revenue, leaving significant room for growth without meaningful incremental capital expenditure.

InCred said the company combines a fully equipped but underutilised manufacturing platform with a supply-constrained market, creating a compelling long-term growth opportunity.

"DIACABS pairs an underutilised, fully equipped plant amidst a supply-constrained market, unlocking at minimal capital cost and a near-zero tax rate for two years - a rare mix of high growth and low capital intensity," the brokerage said while initiating coverage

The brokerage expects revenue to increase from ₹1,910 crore in FY26 to ₹9,244 crore by FY29, implying a compound annual growth rate (CAGR) of around 70%. EBITDA is projected to grow at nearly 73% CAGR during the same period, with margins expanding from 11.7% to around 12.5% as higher utilisation improves operating leverage.

Diamond Power's growth visibility is also supported by a healthy order pipeline. The company had an order book of around ₹3,500 crore as of March 2026 and expects monthly order inflows of ₹250-275 crore. It has also secured a ₹436 crore order for data centre power cables, strengthening its presence in one of the fastest-growing infrastructure segments.

The brokerage further highlighted that the company's financial position has improved significantly following the resolution of legacy issues. The working capital requirement is currently funded by promoters but is expected to ease as bank credit lines and the proposed ₹2,000 crore QIP proceeds become available.

InCred believes Diamond Power is well placed to benefit from India's accelerating investments in power transmission, underground cabling, renewable energy and data centres. While it flagged a slowdown in infrastructure spending as the key downside risk, the brokerage believes the company's underutilised manufacturing capacity, improving balance sheet and strong industry tailwinds provide significant headroom for earnings and capacity utilisation over the next three years.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.