DCX Systems wins orders worth ₹107 crore, with KR Choksey predicting a 60% increase in stock value.

DCX Systems announced it has received multiple purchase orders from both domestic and international clients for electronic kits, cable, and wire harness assemblies, totaling ₹107 crore, which are expected to be delivered within a year. Despite this positive development, the company's stock fell by 3% on Friday (August 16), closing below ₹320. Brokerage firm KR Choksey, however, issued a buy recommendation for DCX Systems, setting a target price of ₹519, indicating a potential upside of over 60% from Friday's closing price. 

The brokerage noted that the company’s first quarter is usually slow, and this year followed the trend. DCX Systems reported quarterly revenue of ₹42 crore, and its railway joint venture is poised to start production. KR Choksey emphasized the company’s strong order book as a reason to invest. Although the stock has declined by 21% over the past month, including a 10% drop in the last week, it has still returned 15% over the past year.

In the first quarter, DCX Systems' revenue decreased by 19% year-on-year, and its net profit fell by 69%. The company also reported an operating loss of ₹4.8 crore for the quarter, mainly due to rising costs. Despite these short-term challenges, KR Choksey maintains an optimistic long-term outlook for the stock.