Edelweiss Financial Services Ltd
Axis Capital Limited
Saffron Capital Advisors Private Limited
DCX Systems Limited was incorporated on December 16, 2011. DCX Systems is among the leading Indian players for the manufacture of electronic sub-systems and cable harnesses in terms of manufacturing capability and revenue in the defence and aerospace sector. They are preferred Indian Offset Partner for foreign original equipment manufacturers (“OEMs”) for executing defence manufacturing projects. It primarily engaged in system integration and manufacturing a comprehensive array of cables and wire harness assemblies and is also involved in kitting. They undertake system integration in areas of radar systems, sensors, electronic warfare, missiles, and communication systems. They provide product assembly and system integration services to address customers’ requirements. As of June 30, 2022, the Company had 26 customers in Israel, United States, Korea and India, including certain Fortune 500 companies, multinational corporations and start-ups.
For year/ period ended ( in Cr.)
|Profit After Tax||65.61||29.56||9.74|
In terms of valuations, at the upper band P/E works out to 30.5x FY22 EPS which is low compared to its peers like Paras Defense & Space Technologies Ltd, Data Patterns (India) ltd and Sundram Fasteners Ltd. Considering all the positive factors, we believe this valuation is at reasonable levels. Hence, Investors may subscribe to the Issue.