Defence stock which is one of the Preferred & largest Indian Offset partners to the Israeli Defence Company, IAI, and many others hit a 5 percent upper circuit in the day’s trade upon receiving new work orders worth Rs. 107 Crores.
Price Action
With a market capitalization of Rs. 3,740 Crores, the shares of DCX Systems Limited hit a 5 percent upper circuit in the day’s trade at Rs. 335.70, from its previous day’s close price of Rs. 319.75. It has delivered a return of 20 percent in a year.
What Happened
DCX Systems Limited has received a new work order from Domestic & Overseas Customers for the supply of Electronic Kits and Cable & Wire Harness Assemblies for a consideration of Rs. 107.08 Crores and the said work order should be executed within 12 months.
About the company
DCX Systems Limited is among one of the leading Indian Defence manufacturing Players, Offering end-to-end solutions for cable & wire harnesses, electronic subsystems, high-end System Integration, and PCB Assembly for the Defence and Aerospace Industries for both Domestic and International customers. It has a strong order book of Rs. 1,937 Crores.
DCX Systems Limited is one of the Preferred & largest Indian Offset partners to the Israeli Defence Company, IAI, for its offset obligations. It caters to various industries like Defence, Aerospace, Industrial Electronics, Medical Electronics and many others.
It has a strong clientele base with well-known players like Bharat Electronics, Astra Microwave Products, Israel Aerospace Industries, Rafael Advanced Defensive Systems, Lockheed Martin, and many others.
Financials and Ratios
Its Revenue from operations declined by 19 percent from Rs. 170 Crores in Q1FY24 to Rs. 138 Crores in Q1FY25, accompanied by profits of Rs. 9.6 Crores to Rs. 2.94 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 8.95 percent, and a return on capital employed (ROCE) of 10 percent. It has reported a debt-to-equity ratio of 0.26.
Written by: Bharath K.S
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