KR Choksey's research report on DCX Systems
The first quarter has always been a lackluster quarter for DCX systems, and it was no exception this time. However, Raneal Advanced Systems (PCBA Arm of DCX) delivered a revenue of INR 424 Mn. At the same time NIART Systems (Railway JV) has geared up and is ready for mass production with assets of INR 4,752 Mn. Operationally, DCX Systems saw a 19% YoY revenue decline to INR 1,381 million, due to a traditionally slow Q1. Rising material costs led to an operating loss of INR 48 million and net profit dropped 69% YoY to INR 29 million. However, we believe healthy recovery is expected from customers against the increase raw material prices under the BOM guarantee.
Outlook
We maintain our BUY rating due to a strong order book of INR 19,370 million, a healthy order pipeline in cable and wire harnessing and system integration, and a positively evolving mix of system integration and non-system integration businesses, supported by the strong potential lying with NIART Systems. We also maintain our target price of INR 519, based on a P/E multiple of 36x on FY26 EPS.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
