DCX Systems Receives Export Order from Israel's Elta System

Shares of DCX Systems Limited surged 5 percent to Rs 355 in morning trade on September 19 after the company announced it has received an export order from Israel’s Elta System worth Rs 154.80 crore. DCX Systems said that the order is related to the supply of RF Electronic Modules and is expected to be completed within 12 months. This marks the second order win in 2 days for the company, following its subsidiary’s acquisition of an industrial license from the Cochin Special Economic Zone (CSEZ) to manufacture and test microwave submodules, avionics, and defence electronic equipment. The newly acquired license allows DCX Systems to manufacture highly classified and sensitive products under CATEGORY-A, as per the Ministry of Defence Security Manual, with a validity of 15 years.

In the recently concluded June quarter, DCX Systems reported a 19 percent year-on-year decline in revenue, accompanied by a 69 percent drop in net profit and an operating loss of Rs 4.8 crore. Despite these challenges, brokerage firm KR Choksey remains optimistic about the company’s long-term prospects. The brokerage expects growth acceleration in the second quarter, supported by a strong order pipeline and key drivers such as a robust order book, increased focus on cable and wire harnessing, and the commercial production of Raneal Advanced Systems. As of 11 am, DCX shares were trading at Rs 348 on the NSE, up by 3 percent from the previous close, with a weekly rally of 6 percent.