Exicom Tele-Systems: How this smallcap stock is charging up India’s EV ecosystem
eading electric vehicle (EV) charger and telecom power solutions provider. The share price of Exicom Tele-Systems Ltd has more than doubled since its listing not long ago. On debut, the stock price saw a bumper listing, surging over 86% from its offer price of ₹142.
In the past month, the stock has rallied more than 15%. Let's delve into why investors are enamoured with this newly listed stock and whether the current rally has more legs. In FY24, Exicom's revenue grew to ₹10.2 billion compared to ₹7.1 billion in FY23, a robust 44% increase.
Meanwhile, profit shot up multi-fold, from ₹80 million reported last year to ₹660 million in FY24. During the year, the company improved its gross margins by 2% as finance costs reduced. Segment-wise, its critical power business saw a 59% growth, while the main business—EV charging—grew 11%, from ₹2.2 billion to ₹2.4 billion.
The power business has seen a steep jump over the past three years. The company's order performance for the past year was impressive, with ₹11.1 billion booked, compared to ₹9.5 billion in FY23. Exicom launched upgraded chargers for home use, spin air, and Gen 1.5 Harmony DC chargers for fast charging, which are noted as India's fastest DC chargers, engineered to make EV charging effortless.
Exicom stands out as one of the few companies in India offering a comprehensive portfolio of AC and DC chargers, ranging from 3.3kW to 360kW. With a pan-India after-sales service, the company has successfully deployed over 35,000 EV chargers across 400 locations in India. The company is currently investing in R&D for next-generation chargers and power conversion equipment.
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