AI-Fueled Growth Drives Netweb Rally: SEBI RAs See Breakout Potential But Also Warn Of Correction Ahead

SEBI analyst shares two scenarios – either a breakout to new highs or a steep correction that offers long-term entry points.
Still life of laptop computer, mouse and phone. AFR GENERIC Picture by LOUIE DOUVIS (Photo by Fairfax Media via Getty Images via Getty Images)
Still life of laptop computer, mouse and phone. AFR GENERIC Picture by LOUIE DOUVIS (Photo by Fairfax Media via Getty Images via Getty Images)
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Preeti Ayyathurai·Stocktwits
Updated Jul 02, 2025 | 8:31 PM GMT-04
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Netweb shares surged 15% on Monday, as investors cheered its strong order book and robust fourth-quarter (Q4) results. 

The company reported a 45% rise in profits to ₹43 crore, with revenues touching ₹414 crore in Q4. It also achieved its earmarked FY25 guidance, reporting its highest-ever annual income of ₹1158 crore. 

Netweb’s AI systems segment was the key performer, growing 112% year-on-year and contributing 14.8% to total revenue.

SEBI-registered advisors see the potential for further movement — but not without caveats.

Priyank Sharma identifies ₹1,542 as a significant support level. Adding that a breakout above ₹1,680 could propel the stock toward the ₹1,877–₹2,100 range in the short term, with invalidation at ₹1,450. 

He also notes that ₹2,100 may act as a strong resistance, and further strategy will depend on the price reaction at ₹2,108. 

However, Sharma outlines two possible scenarios:

  1. A sustained move above ₹1,680 reaching ₹2,108 could trigger a bullish breakout to all-time highs.
     
  2. A rally followed by rejection could push the stock to new lows in 2025, creating a long-term buying opportunity below ₹1,150.

Rajiv Gupta, another SEBI-registered advisor, notes that the stock has already hit an earlier target of ₹1,600 and is now trading in the next zone of ₹1,680–₹1,700, with the upper circuit near ₹1,707.

Data on Stocktwits shows that retail sentiment on this counter turned ‘extremely bullish’ a week ago amid high message volumes.

may 5 netweb 12noon.jpg
Netweb sentiment and message volume on May 5 as of 12:10 pm IST. | source: Stocktwits

 Still, Netweb shares have fallen 40% year to date. 

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