Upcoming IPO Analysis - Exicom Tele-Systems Limited

What Exicom Tele-Systems Limited Do?

Exicom Tele-Systems Limited was founded in 1994 & is expert in power systems, electric vehicle (EV) charging, & other related technologies. business is divided into two verticals.

1. Power Systems: For digital communication networks, Exicom offers reliable power solutions.
2. EV Charging Solutions: In Indi & Southeast Asia, Exicom has installed more than 6,000 AC & DC chargers. Their EV charging options are built to resist challenging electrical & environmental circumstances.

This Upcoming is among first to join Indian EV charger manufacturing market as of March 31, 2023. Company is in EV charger industry, providing fast charging (DC chargers for businesses & public charging networks in cities & highways) as well as slow charging (mostly AC chargers for home use). Charge point operators (CPOs), fleet aggregators, & well-known automakers (for both passenger vehicles & EV buses) make up clientele.

Exicom Tele-Systems Limited Operational Strength

1. Business deployed more than 61,000 EV chargers at 400 places in Indi by Sep 30, 2023. By Sep 30, 2023, business will have installed 470,810 Li-ion batteries/more than 2.10 GWH, for use in telecommunications industry.
2. Production facility of firm conforms to ISO 9001:2015, ISO 45001:2018, & ISO 14001:2015 standards.

Exicom Tele-Systems Limited Financials

 
Exicom Tele-Systems Limited's revenue decreased by -14.79% and profit after tax (PAT) rose by 24.07% between the financial year ending with March 31, 2023 and March 31, 2022.

Exicom Tele-Systems Limited Financials Analysis

Assets

1. Exicom’s Assets of company have fluctuated over past four periods, reaching recent value of 629 Cr. as of Sep 30, 2023.

2. Investors should analyse composition of assets to understand company's investment decisions & operational efficiency.

3. Consistent increase in assets indicates growth & expansion, while decline may signal divestment/underutilization of resources.

Revenue

1. Revenue has varied significantly over past four periods, with highest recorded at 849 Cr. in March 2022 & lowest at 467 Cr. in Sep 2023.
2. Investors should assess reasons behind fluctuations in revenue, such as changes in market demand, pricing strategies/operational challenges.
3. Consistent revenue growth is indicative of healthy business, while declining revenue may raise concerns about sustainability.

Profit After Tax (PAT)

1. Profit After Tax shows company's bottom-line performance, reflecting its ability to generate profits after accounting for expenses & taxes.
2. While PAT has seen fluctuations, recent figure of 27 Cr. as of Sep 30, 2023, indicates notable improvement compared to previous periods.
3. Investors should analyse factors driving changes in profitability, including cost management, operational efficiency, & market conditions.

Net Worth

1. Net Worth represents total value of company's assets minus its liabilities, reflecting shareholders' equity.
2. Recent net worth of 311 Cr. as of Sep 30, 2023, suggests increase compared to previous periods, indicating growth & enhanced shareholder value.
3. Investors should monitor net worth trends to assess company's financial health & long-term sustainability.

Reserves & Surplus

1. Reserves & Surplus indicate cumulative profits retained by company over time, which can be reinvested for future growth/distributed to shareholders as dividends.
2. Despite fluctuations, recent figure of 205 Cr. as of Sep 30, 2023, suggests stable reserve position.
3. Investors should evaluate company's dividend policy & capital allocation strategies based on its reserves & surplus position.

Total Borrowing

1. Total Borrowing reflects company's debt obligations, including short-term & long-term borrowings.
2. While recent total borrowing of 73 Cr. as of Sep 30, 2023, is lower compared to previous periods, investors should assess company's leverage ratio & debt servicing capabilities.
3. Financial risk may increase due to high levels of borrowing; however prudent debt management can support growth initiatives.

Investor Guidance

Comprehensive analysis of financial metrics, considering historical trends & industry benchmarks should be conduct by investors. Investor should Focus on understanding drivers behind fluctuations in key financial indicators & their implications for company's performance & future prospects. Must monitor management's strategies & actions in response to financial challenges/opportunities, including capital allocation decisions & operational initiatives. 
A wise investor should seek clarity in financial reporting & transparency, ensuring adherence to regulatory standards & disclosure requirements. Diversify investment portfolios to mitigate risks associated with individual companies/sectors, maintaining balanced approach to wealth management.

Conclusion

Upcoming IPO is showcasing the strong fundamentals in their finance book and also the consistent growth has been the strongest pillar of their valuation as well.

Business pioneered EV charging infrastructure and power management solutions. With a 60% market dominance in the EV charging sector, it is well-positioned to benefit from the global transition from gasoline-powered to electric vehicle technology. Due to the company ceasing its battery-related operations, FY23 top-line saw a slight setback. Looking at the issue's annualized profits for FY24, it looks properly priced. Nonetheless, given the growing prospects and well-timed development strategies, investors can seize the chance to reap medium- to long-term benefits.