Defence stocks in focus today: Shares of DCX Systems—a company specializing in system integration and cable & wire harnessing—jumped 4.12% in early trade on Tuesday, hitting a two-month high after the company secured fresh export orders.
In an exchange filing on Monday, the company informed investors that it had bagged export orders worth ₹28.60 crore from Israeli defense majors and other overseas clients. The order is for the manufacture and supply of CIWS antennas and cable & wire harness assemblies, according to the company’s regulatory filing.
Earlier in February, the company had secured a similar order worth ₹4.79 crore from Bharat Electronics for the supply of cable and wire harness assemblies.
In mid-April, the company entered into a joint venture with Elta Systems, a unit of Israel Aerospace Industries. The JV focuses on the development of Airborne Maritime Radar Systems, Fire Control Radar Systems, and other radar solutions for airborne and land-based applications under India’s “Make in India” initiative.
DCX Systems, a leading player in India’s defense manufacturing sector, offers end-to-end solutions for the production of electronic systems, sub-systems, and cable & wire harness assemblies for both domestic and international clients.
The company is strategically positioned to benefit from the global rise in defense spending, which is projected to grow to $2,652 billion by 2027. This growth is being driven by ongoing geopolitical tensions, the modernization of armed forces, shifting global power dynamics, technological advancements, and evolving policy frameworks.
In line with global trends, the defense electronics market is also set for robust growth. Projections suggest it will expand to $237 billion by 2030, with the Indian market expected to grow from $2.58 billion in 2022 to $7.2 billion by 2030, according to recent estimates.
DCX Systems share price trend
After experiencing a sharp decline, DCX Systems’ shares regained strength in April, ending the month with a 24% gain. The momentum has continued into the current month, with the stock rising another 8% so far.
Between March 2023 and January 2024, the shares witnessed a strong rally, delivering a return of 185%. In July 2024, the stock touched a record high of ₹451. At current levels, it remains about 32% below that peak. However, the stock is trading with 120% gains from March 2023 lows.
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