The shares of one of the leading Indian manufacturers of electronic sub-systems and cable harnesses gained 6 percent to Rs 390 per share after the company launched QIP to raise funds.
With a market capitalization of Rs 3,640 crores, DCX Systems Ltd belongs to the small-cap category. At 12:17 p.m, the stock was quoting at Rs 376.40 apiece, up 2.24 percent from the previous close price.
As per the report, DCX Systems has launched a Qualified Institutional Placement (QIP) to raise funds of up to ₹500 crore. The base issue size is ₹300 crore, while a green shoe option of ₹200 crore. The floor price of the issue has been fixed at ₹358 per share, which is a 2.7% discount on Monday’s closing price.
The company’s revenue increased 77 percent yearly, from Rs 174 crore in Q2FY23 to Rs 309 crore in Q2FY24, In the same timeframe, Net profit grew by 150 percent, from Rs 8 crore to Rs 20 crore.
DCX Systems shares gained 34 percent in the last six months and 77 percent in a year.
The company reported an order book of Rs 1,258 crores at the end of the first quarter of 2023. while the company has exhibited a healthy compounded revenue growth of 43% and profit of 95% over the last 5 years.
The company is a licensed defence Industrial manufacturer in the field of defence subsystems that include microwave components, modules for radar and electronic warfare subsystems, and microwave sub-modules, for command and guidance units for missile Subsystems.
The company has notable clients including Astra microwave products, ELTA systems, Israel Aerospace Industries, Astra Rafael pvt ltd, and many more.
In FY23, the company received a majority of its revenue from the System Integration in defence equipment business accounting for 95%, followed by 4% from electronic kits and 1% from Cable & Wire Harness.
DCX Systems Ltd is in the business of System Integration and Cable & Wire Harnessing.The Company provides end-to-end solutions for cable & wire harnesses, electronic subsystems, high-end System Integration, and PCB Assembly for the Defence & Aerospace Industry.
Written by Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
