Exicom Tele-System Ltd – Value Pick Multibagger

Exicom Tele-System Ltd

Value Pick Multibagger Stock for long term investment

exicom.in BSE: 544133 NSE: EXICOM

Executive Summary

Exicom Tele-System Ltd. is a frontrunner in the sustainable energy and EV charging ecosystem, leveraging its 30+ years of expertise in power solutions. The company is poised to benefit from its aggressive capacity expansion, innovative product offerings, and government-driven tailwinds in the electric mobility and renewable energy space. Despite short-term earnings pressure, Exicom’s strategic positioning and long-term growth potential make it an attractive opportunity for investors seeking exposure to the EV and clean energy transition.

Key Company Metrics

Market Cap: ₹2,948 Cr.
Current Price: ₹244
52-Week High/Low: ₹530/₹169
P/E Ratio: 78.3
Book Value: ₹60.4
Debt: ₹620 Cr.
Dividend Yield: 0.00%

ROCE: 20.0%
ROE: 13.5%
PAT (FY24): ₹37.7 Cr.
Sales (FY24): ₹970 Cr.
Sales Growth (3Y): 25.7%
Profit Growth (3Y): 163%
Promoter Holding: 69.6%
Free Float: 30.4%

Future Growth Drivers

EV Charging Infrastructure

Comprehensive product portfolio catering to AC and DC fast chargers, home chargers, and liquid-cooled dispensers (480 kW).
Favorable government policies, including ₹10,900 Cr. in subsidies and incentives for EVs and charging infrastructure under India’s EV roadmap.
Targeting a dense urban and highway charging network with high-powered stations to address range anxiety.
Key milestones:
- Expanded EVSE (Electric Vehicle Supply Equipment) capacity at the upcoming Hyderabad plant.
- Orders secured from major Charge Point Operators (CPOs) and OEMs.
- Integration of “Plug & Charge” functionality by March 2025.

Critical Power Solutions

Large projects include:
- BharatNet III (₹2,000 Cr. opportunity)
- BSNL 4G saturation (₹360 Cr.)
- Telecom Li-ion battery upgrades (₹800 Cr.)
Entry into new segments like data centers, energy storage, and renewable integration.
Exicom maintains a leadership position with advanced hybrid power systems and lithium-ion battery solutions.

Export Markets & Product Innovation

Export Market Strategy:
- Focused expansion in Southeast Asia, Europe, and the US
- NEVI-compliant chargers
- Partnerships with global OEMs
- Collaboration with Hubject for e-roaming solutions
Product Innovation:
- ₹40 Cr. investment in R&D
- Portable 3.3kW home chargers
- Advanced distributed chargers (240-600 kW)

Planned Expansions

Hyderabad Integrated Manufacturing Facility

Total built-up area: 280,000 sq. ft.
Civil work completion: January 2025
Trial production expected: April 2025
Capacity Expansions:
- AC charger production: 42k to 180k units
- DC chargers: 2,400 to 3,500 units
Green building practices, including 1.5 MW solar plant

IPO Proceeds Deployment

₹151.47 Cr. allocated for Telangana plant (₹37.35 Cr. utilized)
₹69 Cr. for incremental working capital
₹40 Cr. for R&D and product development

Financial Projections

Revenue for FY24: ₹970 Cr.
Projected CAGR: 20-25% over next three years
EBITDA margin improvement:
- FY24: 8.35%
- FY27 (projected): ~12%
PAT Projection:
- FY24: ₹37.7 Cr.
- FY25 (projected): ₹50 Cr.
- FY27 (projected): ₹100 Cr.
Debt/Equity ratio expected to reduce steadily

Competitive Landscape

Peers

Delta Electronics: Global scale and technology leader in EVSE
ABB: Premium DC fast chargers
Tritium: Focused on modular DC charging

Exicom’s Strategic Advantages

Vertical integration reduces production costs
200+ service engineers across India
Extensive partnerships with OEMs, utilities, and fleet operators

Inherent Risks

High Valuation Multiples

P/E ratio of 78.3x indicates stock priced for significant growth, leaving limited room for valuation errors.

Execution Challenges

Potential delays in plant commissioning or product rollout could affect earnings momentum.

Policy & Competitive Risks

Over-reliance on government subsidies and potential market share erosion by larger global players with advanced technologies or aggressive pricing.

Valuation

Valuation Methodologies

Using discounted cash flow (DCF) methodology with a 10% discount rate, Exicom’s fair value per share is estimated at ₹300-₹320.
Peer comparison and EV/EBITDA multiples suggest a valuation range of ₹290-₹310, reflecting the company’s high growth potential and leadership in EV infrastructure.

Investment Thesis

Exicom represents a unique opportunity to capitalize on the EV revolution and renewable energy transition. Strong growth drivers, capacity expansions, and a robust order book support long-term bullish outlook. Recommended for investors with high-risk appetite.

Exicom Tele-System: EV Charging Revolution