DCX Systems has 54% upside potential
DCX Systems has 54% upside potential
DCX Systems' recent order wins add confidence on the revenue visibility for the near to medium term. However, lack of clarity on the recovery of increased raw material costs and persisting margin pressure have caused us to revise down our EPS estimates for FY25E and FY26E by -34%/-10%. Overall, we continue to hold our conviction on DCX’s ability to become a key player in EMS space with huge potential lying ahead in the railway and defence space. Consequently, we retain our P/E multiple of 36x on FY26E EPS and maintain our BUY rating on the counter with the target price of INR 466 (Previously: INR 519)