This Small-Cap Defence Stock Shoots Up 14% After Winning ₹1,250 Cr Order From L&T

Shares of DCX Systems rallied 14% on Tuesday morning after the firm won a ₹1,250 crore order from Larsen and Toubro

What Happened: According to the regulatory filing made on July 1, DCX Systems said it won a contract from Larsen and Toubro to manufacture and supply electronic modules. The order should be completed within three years. 

In May, analysts of KR Choksey gave a “buy” rating for the stock with a target price of ₹519 as they reasoned the firm Q4FY24 revenue surpassed the analyst estimates by 28%. The company recorded a revenue from operations of ₹746.2 crore in the March quarter.

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While the company’s EBITDA margin fell in the March quarter to 5.08% from 8.98% in the previous year, the management said it is likely to improve in FY25 driven by 70% captive consumption of printed circuit board assembly.

As of March 2024, DCX Systems had an order pipeline of ₹800 crore.

Price Action: Shares of DCX Systems rose 13.67% to ₹431.25 on Tuesday morning. The stock went up over 14% to hit a new 52-week high of ₹440 earlier.

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