DCX Systems Ltd

Stock Opportunities
189

You have beautifully summarized the company. I like to include a couple of points.

  1. Long lead in time procurement of Semiconductor parts. These are OEM specific Semi chips which are entirely controlled by export restrictions.
  2. Raneal is a big ACE which will contribution by bring OPM% from 6 - 9/10% in coming years. (FY 26-27)
  3. Earlier company had only Israel aerospace as only major client. Now USA and French companies are showing initiatives to honor their OFFSET amount. It is leading to diversification of Client profile. It will be showing difference in coming years.

I think, we need to evaluate company based on Q4 numbers.

Note : Invested and Biased.

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190

Correct, we need to wait and look at the FY as a whole.

I can see the uncertainty. But in uncertainty, lies opportunity.

I do not know of another Indian company that is setup similar to DCX. Hence, the MOAT, and the patience.

Having ability is meaningless. Having it, and using it, is tremendous.

Mr. Rao may come across as arrogant. I have seen confidence being ridiculed as arrogance, too often. I’ve also seen arrogance coming back to slap the man in the face. Time will tell which attribute he has.

Loaded, heavily, and waiting.

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191

Political systems are setup, and domestic defence orders are flowing through.

It’s a matter of time.

DCX has to setup the runway this FY - so Q3/Q4 inflow is critical & awaited, eagerly.

Feel I can smell it in the air.

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192

Today’s price action seems to validate the fragrance in the air.

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193

It looks like some people already have some information.

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195

https://www.business-standard.com/amp/markets/news/dcx-systems-rises-3-on-securing-rs-19-cr-order-from-israel-s-elta-systems-125010200208_1.html

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image
image905×215 23.7 KB

483cr order :fire:
https://www.bseindia.com/xml-data/corpfiling/AttachLive/0f52a252-7e5b-44a5-8f0e-0486b38d3bad.pdf

197

Finally. Had expected a mega order before Q3 results.

I suspect we will see a few more this FY. And maybe the first railways order for NIART this FY.

16k locos. 15cr per piece. An order for even 500 locos will change the trajectory for DCX.

Offset obligations of $1b.

If things fall in place, we’re set for 4 digits.

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198

For Obstacle detection system, he said can’t give the price but he was pointing out that 15 cr is the savings that could be made per loco, so the price should be a fraction of that, is that right?

199
  1. Last order received (483 Cr) from ELTA was a good news, as this is a “full system” to be supplied in 12 months, till now they were doing subsystems only. Should we expect better margins for this? (export order + full system supply).
  2. They had been trying to onboard medical technologies company but that has not happened, hope that happens soon
  3. New TOT should also be announced in 1-2 months, with 200-250 crore investment, that should be a good one as well. Hoping that this one doesn’t have long lead time to setup and get going. I guess if it is from the US then post trump it might take a few months.
  4. MRO no order has come till now, so that too will add to margins.
  5. More orders from companies like Lockheed, TATA should be on the cards.
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