Shares of this smallcap company surged around 15 percent in Tuesday’s trading session after receiving an order worth Rs. 1,250 crores from Larsen & Toubro Limited. In a month, the stock has delivered around 35 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 4,708 crores, the shares of DCX Systems Ltd started Tuesday’s trading session on a higher note at Rs. 415 compared to its previous close of Rs. 379.40. During the trading session, the shares hit a high of Rs. 440, gaining around 15 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 425 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had received an order from Larsen & Toubro Limited for the manufacture and supply of electronic modules. The order is said to be worth Rs. 1,250 crore and will be executed in the next three years.
Financials:
Looking at the company’s financial statements, the revenue magnified by 278 percent from Rs. 198.16 crores during the December quarter to Rs. 746.2 crores in the March quarter. In addition, the net profits zoomed by 153 percent from Rs. 13.38 crores to Rs. 32.95 crores during the same timeframe.
Recent Developments:
Earlier, DCX Systems Ltd received a new work order valued at Rs 32.20 crore from domestic and international clients for the supply of cable & wire Harness Assemblies. The contract should executed within 12 months.
Order Book:
As of March 2024, the company has a robust order book of Rs. 801.16 crores, with a robust pipeline that is expected to drive future growth.
Customer Base:
DCX Systems has a diverse customer base that includes major domestic and international defence and aerospace companies, including Elta Systems, Israel Aerospace Industries, Bharat Electronics, and several other prominent Indian and multinational corporations.
Future Outlook:
DCX Systems further plans to improve its supply chain efficiency, and cost efficiency, with better profit margins by focusing on new verticals like Make in India, JVs and Transfer of Technology (ToT).
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 6.72 percent and a return on capital employed (RoCE) of 10.83 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was at 5.32 percent.
Company Profile:
Headquartered in Bengaluru, DCX Systems Limited is primarily engaged in system integration and manufacturing a comprehensive array of cables and wire harness assemblies for the aerospace and defence industries.
Written By Vaibhav Patil
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