Under Rs 350: Defence Stock Hits Upper Circuit Today After Securing Work Order Worth Rs 107,08,89,320!

The shares of this Small-Cap defence company hit the upper circuit today as recently the company has received orders worth Rs 107,08,89,320 (One Hundred Seven Crore, Eight Lacs, Eighty-Nine Thousand, Three Hundred Twenty Only) from both domestic and overseas customers. These contracts are for Electronic Kits and Cable & Wire Harness Assemblies to be fulfilled within the next 12 months.

Currently while writing the article, the shares are at around Rs 335.75 per share on the BSE. The current market capitalization of the company stands at Rs 3739 crore.

Incorporated in 2011, DCX Systems Ltd is engaged in System Integration and Cable & Wire Harnessing. The company provides solutions that involve integrating various systems and assembling cable and wire harnesses, which are essential for ensuring efficient and reliable connectivity in various applications. The company is one of the largest Indian Offset Partners for ELTA Systems Limited and Israel Aerospace Industries Limited, System Missiles, and Space Division (collectively known as the "IAI Group"), Israel, catering to the Indian defence market for manufacturing electronic sub-systems, cables, and wire harness assemblies. 

According to the Quarterly Results, in Q1 FY25, the company reported a revenue of Rs 138.08 crore and an operating loss of Rs 4.81 crore. The company’s net profit stood at Rs 2.94 crore. In FY24, the company reported a revenue of Rs 1424 crore compared to Rs 1254 crore, and a net profit of Rs 76 crore, compared to a profit of Rs 72 crore in the previous year.

Regarding the shareholding pattern, the promoters own 59.78 per cent of the company and the public or retail investors hold 30.05 per cent. Both FIIs and DIIs have decreased their stake in the company.

Investors must keep this stock on their radar.

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