CWD shares at 20% upper circuit after Rs 100 crore PhonePe order

CWD - an IoT company specializing in connected devices - has a market capitalisation of Rs 344 crore.

Shares of IT company CWD hit 20 percent upper circuit after it announced a Rs 100 crore order from PhonePe on August 19 to design, develop, and manufacture Sound Boxes for merchants to receive UPI transactions.

CWD - an IoT company specializing in connected devices - has a market capitalisation of Rs 344 crore. The company focuses on wireless technologies NFC, Bluetooth, WiFi, and also long-range systems like 5G LTE among others. Its' FY23 revenue mix was ~38% from exports and the rest from domestic market. The company has delivered over 14 million Sound Boxes across India.

Shares of CWD hit upper circuit of 20 percent at Rs 953.80 on BSE on August 19.

The PhonePe order represents nearly 30 percent of the CWD's market capitalisation, and its prominent peers include Honeywell Automation, Cyient DLM, Syrma SGS and Kernex Microsystems. CWD's FY24 sales were Rs 21.26 crore.

Siddhartha Xavier, Joint Managing Director of CWD said, " This collaboration represents not only a significant milestone for CWD but also a profound endorsement of the 'Make in India' initiative." The orders are to be delivered over a period of two years.

"Under the terms of the agreement, CWD Limited will be responsible for the end-to-end design, development and manufacturing of the Sound Box," the company said in a release.

CWD operates in the Electronics System Design and Manufacturing (ESDM) sector and is betting on various government initiatives aimed at boosting domestic manufacturing. India has already started to see a larger shift of manufacturing and assembly of electronic devices such in recent years.