This recently listed IPO has surged 35% in 3 days; up 144% from IPO price

Exicom Tele-Systems rallied 10% to Rs 346.60, its highest level since its listing on March 5, 2024, on the BSE in Friday's intra-day trade.

Shares of Exicom Tele-Systems rallied 10 per cent to Rs 346.60 on the BSE in Friday’s intra-day trade on back of nearly two-fold jump in average trading volumes. The stock is trading at its highest level since its listing on March 5, 2024. The market price of Exicom has been more than doubled or zoomed 144 per cent against its issue price of Rs 142 per share.

In past three trading days, the stock of India's leading electric vehicle (EV) charger & telecom power solutions provider has surged 35 per cent after reported a solid performance with profit after tax (PAT) of Rs 63.91 crore in financial year 2023-24 (FY24). The company had posted PAT of Rs 8.01 crore in FY23.

The company’s revenue from operations grew 44 per cent year-on-year (YoY) at Rs 1,019.60 crore in FY24, against Rs 707.93 crore in FY23. Reported earnings before interest, tax, depreciation, and amortisation (Ebitda) jumped 111 per cent YoY at Rs 112 crore; margin expanded 349bps at 10.98 per cent during the fiscal. The company has total order book position of Rs 1,106 crore as on March 31, 2024, as compared to Rs 847 crore in FY23.

The management said the company’s critical power business benefitted (60 peer cent growth YoY) from ongoing 5G deployments by Telco’s, replacement of battery assets in filed from lead acid to Li-ion by leading Tower Co’s and securing projects funded by Government of India aimed to creating or upgrading telecommunications network particularly in underserved regions.

With an in-house IP, large R&D teams of 130+ engineers, robust product pipeline and pan India service, the management said the company is well positioned to capture growing EV Charger market in India. EV Charger business grew at 8 per cent and supported deployments across all vertical markets including home chargers, network roll out by leading charge point operators, captive fleet charging, and heavy duty vehicle charging.

The company is expanding its manufacturing facility for EV chargers, DC Power Systems and Lithium-ion Battery Assembly in Telangana which will add to the topline. The company also plans to reduce its debt from the fresh issue, which will improve the profitability. The growth forthe EV industry looks very attractive going ahead in India, as well the need of telecommunication infrastructure for 5G network will give an edge to the company’s growth in future, according to analysts.

Meanwhile, Exicom’s IPO received significant investor interest, with oversubscriptions exceeding 129 times across all investor categories. The share price on listing day rose significantly at Rs 264, a 96 per cent above the IPO price band.