Rs 450 Crore Order Book: Defence & Semiconductor Company Announces Strategic Restructuring of Its Defence-Focused Subsidiaries

The stock gave multibagger returns of 500 per cent in 3 years and a whopping 650 per cent in 5 years.

AXISCADES Technologies Ltd. (ACTL), a leading technology solutions provider, has unveiled a strategic restructuring initiative for its Defence-focused subsidiaries, Mistral Solutions Pvt Ltd. (Mistral) and AXISCADES Aerospace & Technologies Pvt Ltd. (ACAT). This move aims to enhance business operations, align with market demands, and leverage accelerated growth in the Defence and semiconductor sectors.

ACTL acquired Mistral in 2022, resulting in two Defence-focused companies: ACAT (100% Defence) and Mistral (60 per cent Defence and 40 per cent Semiconductor). The Board of ACTL has decided to restructure ACAT and Mistral, including their leadership, to capitalize on synergies, expand Mistral's semiconductor business, and improve operational efficiencies. This process began in Q3 FY2025 and is expected to conclude by Q4FY25.

Post-restructuring, Mistral's vision is to become a significant global player in Defence and AI-powered Hypergrowth sectors, with 60% revenue from Defence and 40% from Hypergrowth sectors. Mistral will pursue a three-pronged strategy for Defence & Aerospace growth: 1) increasing programs and revenue per program (RPP), primarily through DRDO, Defence PSUs, and Tier-1s; 2) focusing on unmanned combat and logistics platforms (drones, anti-drones, self-destroying drones) as part of its Direct-to-Defence (D2D) offering; and 3) expanding engagements with traditional partner OEMs, especially the Big 6 of Europe. Additionally, Mistral will reposition itself as a "Chip to Product" (C2P) company, offering niche Product Integration and GenAI Enablement Services.

Mistral's hypergrowth focus will be on developing AI-driven solutions, including GenAI-based product development, for five verticals: Automotive, Industrial, Consumer, Healthcare, and Hyperscalers. The company will leverage its strong platform expertise in Hardware, Platform Software, and GenAI, along with Large/Small Language Model-based enablement services, to address the gap between Silicon and Commercial shipping products. Mistral's hypergrowth sector activities will be driven from its US-based locations in Fremont, CA (Silicon Valley) and Dallas, TX, aligning to have a scalable global footprint.

Dr Sampath Ravinarayanan, Director and Chief Mentor, said: “Our mission is to enable intelligent products at the edge with Chip-to-Product services for Defence and other hypergrowth sectors. In parallel, we are committed to becoming a significant player in India and globally in Unmanned Combat and Ground Systems. We are rebuilding the leadership team to meet the challenge of taking the company to the next level with a scalable step growth; Together the new team is highly capable and committed to delivering a compelling value proposition for all our stakeholders: our customers, our shareholders, and our employees.”’

About AXISCADES Technologies Ltd

AXISCADES Technologies Ltd is a global engineering and technology solutions company headquartered in Bangalore, with a presence in North America, Europe, and Asia. They offer a wide range of services across the entire product development lifecycle, from concept design to manufacturing support, for industries like aerospace, defence, automotive and medical devices. Their team of over 3200 professionals helps clients create innovative, sustainable, and safer products by leveraging their expertise in areas like avionics, electronic warfare and radar systems. They have a proven track record of working with major defence organizations and original equipment manufacturers, and their solutions have helped reduce program risks and shorten time to market for Fortune 500 companies.

The company has a market cap of Rs 1983 crore and as of September 30, 2024, the company’s order book stands at Rs 450 crore. The stock gave multibagger returns of 500 per cent in 3 years and a whopping 650 per cent in 5 years. Investors should keep an eye on this small-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.