Shares of DCX Systems Ltd. rallied 5% to a day’s high of Rs 346.90 on 17th September, after the firm announced that its subsidiary secured an industrial licence from the Cochin Special Economic Zone (CSEZ) to manufacture and test microwave submodules, as well as avionics and defence electronic equipment.

The new licence allows their wholly-owned subsidiary to manufacture items classified under CATEGORY-A, as per the Ministry of Defence Security Manual. These products are highly classified and sensitive, representing top-level security in defence manufacturing.

The licence granted to the subsidiary is valid for 15 years.

Last month, the company won an order for electronic kits worth Rs 187 crore from a foreign customer. This has to be executed within one year. In mid-August, it received orders for electronic kits, cables, and wire harness assemblies worth Rs 107 crore from both domestic and international customers. Its order book has a one-year execution time for this contract as well.

For the recently concluded June quarter, the firm reported a 19% decline in revenue year-over-year and a 69% drop in net profit. They also recorded an operating loss of Rs 4.8 crore due to rising costs.

So far in 2024, the shares have largely remained flat, gaining almost 1%. The company’s market capitalisation as of now stands at Rs 3,864 crore.

At 2:54 PM, the shares of DCX Systems were locked in the 5% upper circuit at Rs 346.90 on NSE.

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