Small Cap Defence Stock Bags ₹187 Cr Order From Overseas Client, Shares Jump

Shares of DCX Systems that were muted on Wednesday morning shot up sharply after the announcement was made.

What Happened: The defence contractor informed the exchanges that it was awarded an order from an overseas client. The order is for the supply of electronic kits. The order is worth around $22.32 million (around ₹187 crore). The order is expected to be completed in 18 months.

Last month, the company announced bagging a contract from Larsen and Toubro to manufacture and supply electronic modules. The order should be completed within three years. The order was worth around ₹1,250 crore.

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Analysts at KRChoksey have a “buy” call on the stock with a price target of ₹519. The brokerage had that it remains bullish on the stock backed by a strong order book of ₹1,937 crore, 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.

Price Action: Shares of DCX Systems rose 3.20% to ₹340 on Tuesday morning. 

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