Incorporated in 1994, Exicom Tele-Systems Ltd manufactures EV chargers and Critical Power components.
Exicom Tele Services is an Indian company that has traditionally been known for its expertise in providing telecom infrastructure solutions, but what sets it apart now is its significant role in the rapidly growing Electric Vehicle (EV) ecosystem.Exicom is not just playing a part in the telecom industry but is also making strategic strides in the EV sector. Here’s why Exicom Tele Services is a top value pick for investors looking to capitalize on the booming EV market.
1. The EV Sector Boom: The electric vehicle market is growing rapidly, driven by the shift to clean energy. Exicom Tele Services is well-positioned to tap into this growth with its solutions in EV charging infrastructure, energy storage, and telecom integration.
2. Exicom’s Role in the EV Ecosystem:
- EV Charging Solutions: Exicom provides both AC and DC fast charging infrastructure, meeting the rising demand for accessible charging stations.
- Energy Storage Systems: Exicom offers essential energy storage solutions for efficient charging and grid stability.
The acquisition of Tritium, a leading global provider of fast-charging technology for electric vehicles (EVs), marks a significant strategic move for Exicom Tele Services.
Tritium specializes in the development and manufacturing of DC fast-charging stations for electric vehicles. By acquiring Tritium, Exicom gains access to cutting-edge charging technology that will enhance its own EV charging solutions. This acquisition helps Exicom expand its capabilities in providing fast, reliable, and efficient charging stations—essential to meet the increasing demand for EV infrastructure as the market grows. Tritium is an international player in the EV charging market with a strong presence in North America, Europe, and Australia. Acquiring Tritium allows Exicom to extend its reach beyond India and tap into global markets, particularly as the global push for electric vehicles and clean energy solutions continues to accelerate.
Key Highlights and Landmark Events
Largest Purchase Orders: Exicom received its largest purchase orders in history, totaling approximately Rs. 1,680 crores, within its critical power business.This includes supplying hybrid power systems, lithium-ion batteries, and services like annual maintenance contracts for over 10 years for the BharatNet program, aimed at connecting over 160,000 panchayats.
Product Development and Innovation:Exicom launched an integrated DC fast charging technology with energy storage at the Bharat Mobility Show. The company is investing in liquid-cooled charging technology at its R&D center in Brisbane, Australia, expected to launch in H2 of FY26.
International Markets: The acquisition of Tritium has opened a $10 billion addressable market13. Exicom aims to be among the top five DC fast charger manufacturers in key global markets by 2030.
Recent Performance and Challenges
Exicom Tele-Systems experienced losses in the recent two quarters primarily due to a combination of factors affecting both their EV charging and critical power businesses, as well as strategic decisions related to expansion.
EV Charging Business Performance: In the EV charging sector, sales were initially sluggish in the first half of calendar year 2024, with companies awaiting new models. However, Q3 saw a rise in demand, with Exicom’s revenue growing 38% year-on-year. Despite this growth, the company faced intense competition, leading to margin squeeze. To mitigate this, Exicom is focused on reliability, key customer retention and increasing its wallet share with those customers.
Critical Power Business Performance: The critical power business experienced a slowdown in Quarter 3, with sales decreasing by almost 60%. This was attributed to consolidation within telecom infrastructure companies, delays in PSU projects and the deferment of CAPEX by telcos after heavy investments in 5G networks. The telecom infrastructure spend usually happens in phases and is not consistent quarter-on-quarter. However, the company anticipates better growth in Q4 and stable revenues over the next three years, supported by large orders.
Acquisition of Tritium: A significant factor affecting profitability was the acquisition of Tritium. While this acquisition opened up a $10 billion addressable market and is central to Exicom’s global expansion strategy, it also brought short-term financial challenges. The first quarter after the acquisition was focused on restructuring the business, transferring assets and customer contracts, which took time and required investment. Tritium is still in a startup phase, and its costs have negatively impacted Exicom’s consolidated numbers. The company expects Tritium to achieve EBITDA breakeven in FY26.
Exicom Tele-Systems Limited’s stock price has corrected significantly from its all-time high and is now near its IPO price level. As of February 13, 2025, the stock price is ₹184.25. This is a substantial drop from its all-time high of ₹530.00, which was reached in July 2024. The 52-week high was also ₹530.00, occurring on July 2, 2024. The current price represents a decline of ₹345.75 from the 52-week high.
Given the current valuation and recent performance, Exicom’s stock is considered overpriced. However, the long-term forecast suggests potential for growth. Investors with a long-term horizon might find it interesting to monitor the stock, especially if it aligns with their risk appetite and investment strategy.
Disc: Just tracking. Not a buy/sell recommendation