DCX Systems Q4 Results Review - Parallel Shift Towards Product Supplier Is On Track: DRChoksey

DRChoksey Research Report

DCX Systems Ltd. delivered strong revenue growth during the quarter with decline in the net profit growth in Q4 FY24 (YoY) because of higher material cost and higher tax rate. However, we believe DCX is likely to recover Rs 200-250 million from the customers on account of the ‘Material Guarantee’ clause.

We estimate DCX to deliver 29.6%/45.5% revenue/profit after tax compound annual growth rate during FY24-FY26E aided by faster ram up of Raneal Advanced systems coupled with swift execution of large order book upon successful conversion of robust order pipeline.

We have increased our topline estimate by 5%/6% and revised the Ebitda margin slightly higher by 12 bps/25 bps for FY25/FY26 which is offset by the higher tax at 25% during the same period.

We maintain our Buy rating on the stock with 36 times P/E on the EPS of FY26E at Rs 519 per share with an upside of 56.5% during the same period.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.