DCX Systems shares surged 4.12 per cent to a two-month high in early trade on May 13 after the company secured fresh export orders worth Rs 28.6 crore. The small-cap defence electronics player informed exchanges that the order came from Israeli defence clients and other overseas partners.

The new contract includes manufacturing and supply of CIWS antennas and cable & wire harness assemblies—core offerings in DCX’s portfolio.

In April, DCX entered into a joint venture with Elta Systems, a unit of Israel Aerospace Industries. The JV is focused on the co-development of advanced airborne maritime radar systems, fire control radars, and land-based radar technologies under the Make in India initiative.

This alliance not only enhances DCX’s technical capabilities but also opens up export opportunities amid rising demand for high-end radar solutions.

The new export deal follows a Rs 4.79 crore order in February from Bharat Electronics. With these consecutive wins, DCX is building a solid order pipeline and expanding its export footprint.

Analysts say that such consistent orders improve revenue visibility and reinforce DCX’s status as a key system integrator in India’s defence manufacturing space.

After correcting sharply post its July 2024 peak of Rs 451, the stock has been on a recovery path. It ended April with a 24 per cent gain and is up another 8 per cent so far in May.

From its March 2023 lows, DCX Systems has delivered a stellar return of 120 per cent, and 185 per cent during its previous rally phase ending Jan 2024.

With India’s defence electronics market projected to grow from $2.58 billion in 2022 to $7.2 billion by 2030, DCX Systems is well-placed to ride the capex wave. Investors should watch execution timelines, margin trends, and upcoming export opportunities.