Synopsis:
Axiscades Technologies jumped 5% after it announced that it has secured a contract worth Rs 224 crore from the Indian Army under the Atmanirbhar Bharat initiative.
The shares of this leading defence company are in focus after its subsidiary bagged an order amounting to Rs 224 crore from the Directorate General of Capability Development, Integrated Headquarters of Ministry of Defence (Army).
With a market capitalisation of Rs 5,525 crore, the shares of AXISCADES Technologies Ltd are currently trading at Rs 1,300 per share, representing a decline of 14 percent from its 52-week high of Rs 1,506 per share. Over the past five years, the stock has delivered multibagger returns of 2,327 percent.
On Monday, Axiscades, through a stock exchange filing, announced that the company’s wholly owned subsidiary, Axiscades Aerospace & Technologies Private Limited, has signed a contract worth Rs 223.95 crore with the Indian Army under the “Atmanirbhar Bharat” initiative.
The scope of the work includes the supply of 212 quantity of Next-Gen 50-Ton Tank Transporter Trailers, and the delivery of the product is estimated to be completed over the next two years.
Tank Transporter Trailers are heavy-duty trailers used to carry tanks and armoured vehicles, usually up to 50 tons. They come with features like hydraulic ramps for easy loading and special wheels that help the trailer move or turn smoothly, even in tight or rough areas.
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Financial Highlights
The company delivered a revenue of Rs 1,031 crore in FY25, up by 8 percent from its FY24 revenue of Rs 955 crore. Coming to its profitability, the company delivered a robust net profit growth of 127 percent to Rs 75 crore in FY25 from Rs 33 crore in FY24.
The stock delivered an ROE and ROCE of 12.61 percent and 13.57 percent respectively, and is currently trading at a P/E of 71x as compared to its industry average of 68.15x.
AXISCADES Technologies Limited is a leading Indian multinational company specializing in Engineering Research & Development (ER&D) services. It is headquartered in Bangalore, Karnataka, and it offers end-to-end product engineering solutions across various sectors, including Aerospace & Defense, Automotive, Energy, Medical Devices, Digital, and Semiconductors.
Written by Satyajeet Mukherjee
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