Can this be the next multibagger stock in defence electronics? The order book stood at Rs 1,258 crore, with 160 percent profit growth!
The stock is currently trading at Rs 354.40, showing spectacular gains in the short term with a 30 per cent return in one month and an impressive 77.61 per cent return over six months.
In the dynamic landscape of Aerospace and Defence Electronics, DCX has emerged as a formidable player, boasting consistent growth and an impressive track record in both revenue and profitability. Over the last three years, the company has demonstrated a robust Compound Annual Growth Rate (CAGR) of 40 per cent in revenue, underlining its strong business verticals and execution capabilities.
DCX's financial performance is nothing short of spectacular. The Profit After Tax (PAT) has witnessed a staggering CAGR of 56 per cent over the same three-year period. The order book as of September 30th, 2023, stands at an impressive Rs 1,258 crores.
Marquee Clients and Strategic Ventures:
The company's growth is further fuelled by its marquee clients, including industry giants like SFO Technologies, Astra Rafael, AMETEK, IAIELTA System, Bharat Electronics, Israel Aerospace Industries, and Alpha Design Technologies.
DCX's growth journey is fortified by strategic joint ventures, highlighting its commitment to innovation and expansion. The EMS-RANEAL collaboration plays a crucial role in integrated manufacturing, providing complete solutions to OEMs in the Aerospace & Defence sector.
The ELTA-DCX joint venture is equally pivotal, focusing on direct supply to the Indian and Global Railway market. By serving as a prime equipment supply integrator, DCX aims to enhance safety and efficiency in railway operations.
Moreover, the company is actively engaged in discussions with leading technology players globally for joint ventures and technology acquisitions. This strategic move aligns with the Aatmanirbhar Bharat and Make-In-India initiatives, emphasizing DCX's commitment to local innovation and self-reliance.
Industry Outlook:
DCX operates in an industry with a promising future. The global defence spending forecast shows a robust 3.99 per cent CAGR, while the global defence electronics market is projected to grow at an even more impressive 6.61 per cent CAGR. The Indian Defence Electronics Market is expected to experience significant growth with a forecasted CAGR of 13.71 per cent.
Financial Performance
In terms of financials, DCX's Q2FY24 results showcase a remarkable year-on-year growth of 77.78 per cent in revenue from operations, reaching Rs 309.12 crores from the previous year's quarter at Rs 173.88 crores. The PAT for the same period exhibits an extraordinary year-on-year growth of 159.28 per cent, soaring to Rs 20.41 crores from Rs 7.87 crores.
The stock is currently trading at Rs 354.40, showing spectacular gains in the short term with a 30 per cent return in one month and an impressive 77.61 per cent return over six months. The company's strong promoter holding of 71 per cent adds another layer of confidence for investors.
About Company
Dcx Systems Ltd is in the business of System Integration and Cable & Wire Harnessing.
Disclaimer: The article is for informational purposes only and not investment advice.
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