DCX Systems bags Rs 155-cr order from Israeli defence co; stock rises 5%

DCX Systems received export orders worth Rs 154.8 crore from Elta Systems

DCX Systems share price advanced as much as 5 per cent and recorded an intraday high of Rs 355.05 per share on the BSE on Thursday. The up-move in the stock came after the aerospace and defence company bagged an export order from Israel-based Elta Systems orders worth Rs 154.8 crore.

At around 11:20 AM, shares of DCX Systems were up 1.48 per cent at Rs 343.15 per share. In comparison, the BSE Sensex traded 538.13 points higher at 83,486.36 around the same time.

"We wish to inform that the company has received export orders from Elta Systems Ltd., Israel, for $ 18,495,779.10 (Rs 154.8 crore)," the filing read.

DCX Systems will supply Radio Frequency (RF) Electronic Modules within 12 months of duration.

Previously, on August 28, the company received an order worth Rs 187.29 crore from an overseas customer. The order included supplying Electronic Kits within a 12 months duration.

As of March 31, 2024, the company's order book stood at Rs 801.1 crore.

On May 6, 2024, Choice Broking had initiated coverage on DCX Systems with an 'Outperform' rating. The brokerage gave a target of Rs 461 per share.

Choice Broking expects offset, and maintenance, repair and overhaul (MRO) opportunities from historically inducted programs, and the introduction of import embargoes to benefit DCX Systems in the medium to long term.

Further, the brokerage anticipates DCX System's revenue, earning before interest, tax, depreciation, and amortisation (Ebitda), and net income to grow at compound annual growth rates (CAGR) of 19 per cent, 31 per cent, and 32 per cent, respectively, over FY23-26, driven by the Elta Systems joint venture, backward integration, and new orders in both export and domestic defence markets.

"The backward integration with Raneal Advanced Systems for Printed circuit board (PCB) assembly is projected to boost margins by approximately 100-150 basis points (bps)," the report read.

In the past one year, DCX Systems shares have gained 10.3 against BSE Sensex's rise of 22.7 per cent.