DCX Systems makes a stellar debut: Should you buy, sell or hold the stock?

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

After an electrifying debut, share prices of DCX Systems, which manufactures electronic sub-systems and cable harnesses, gained further on November 11. Most analysts also maintained their bullish view and advised to either hold the stock or book partial profits.

The stock got listed at Rs 286.25 on the BSE, while the listing price on the National Stock Exchange was Rs 287 – a premium of 38 percent over the issue price. The stock gained further 5 percent to trade above Rs 300 as of 11am.

“Healthy premium listing is justified on the back of reasonable valuations for a fancy sector demand in aerospace and defence which is well supported by the government under the Make-in-India and Atmanirbhar Bharat programmes with unlimited opportunity in the long run,” said Prashanth Tapse, Senior VP - Research, Mehta Equities.

The Rs 500-crore public issue had received stellar response from investors and was subscribed nearly 70 times, led by institutional and retail buyers. The huge demand was also a driver for gains on the listing day.

“We recommend to book partial profit and hold the remaining allotment,” said Astha Jain, Senior Research Analyst at Hem Securities. “The company is positioned well to capitalise on industry tailwinds with track record of consistent financial performance along with experienced and qualified Promoters”

Narendra Solanki, Head of Equity Research at Anand Rathi Shares and Stock Brokers, had a slightly different view. He said that given the positive market sentiments and growth prospects, investors allotted with shares of DCX system limited may hold the shares according to their risk appetite.

Ahead of the IPO as well, analysts were overwhelmingly positive. Their bullishness stemmed from the bright outlook of the Indian defence and aerospace industry and the position that DCX Systems has carved for itself.

Company’s business model has visibility of cash flows and ability to mitigate operational and technology risk, and it is strategically located in the Special Aerospace Economic Zone with an advanced and modern manufacturing facility, giving it an advantage.

“With indigenization and other policy measures of the government, there is an uptick in the business of domestic entities catering to the aerospace & defence manufacturing space,” said Rajnath Yadav, Research Analyst at Choice Broking. “We believe it is a long term play. So investors are recommended to remain invested in the counter.”

Tapse, meanwhile, said allotted investors should look for booking profits for such healthy listings in current market scenarios.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.