Shares of DCX Systems Limited surged 5 percent to Rs 355 in morning trade on September 19 after the company announced it has received an export order from Israel's Elta System worth Rs 154.80 crore.
In a regulatory filing to the exchanges, DCX Systems said that the order is related to the supply of RF Electronic Modules and is expected to be completed within 12 months.
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This is the second order win in 2 days after its subsidiary secured an industrial license from the Cochin Special Economic Zone (CSEZ) to manufacture and test microwave submodules, along with avionics and defence electronic equipment.
The newly acquired license permits DCX Systems’ wholly-owned subsidiary to manufacture items classified under CATEGORY-A, according to the Ministry of Defence Security Manual. These products are considered highly classified and sensitive, representing the highest level of security in defence manufacturing. The granted license is valid for 15 years.
In the recently concluded June quarter, DCX Systems reported a 19 percent year-on-year decline in revenue, with net profit plunging by 69 percent. The company also recorded an operating loss of Rs 4.8 crore, primarily due to rising costs.
Despite these challenges, KR Choksey remains optimistic about the company's long-term prospects. The brokerage expects more clarity on growth acceleration in the second quarter, supported by a strong order pipeline. It has maintained its earnings estimates for FY25 and FY26, citing a robust order book, an increased focus on cable and wire harnessing, and the commercial production of Raneal Advanced Systems as key drivers.
At about 11 am, shares of the company were trading at Rs 348, higher by 3 percent from the previous close on the NSE. DCX shares have rallied 6 percent this week.
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