Exicom Tele-Systems zooms 40% in 4 days on strategic pact with Hubject

Shares hit a new high of Rs 461, as they rallied 14% on the BSE in Monday's intra-day amid heavy volumes and trading 225% higher over its issue price of Rs 142 per share.

Exicom shares zoom: Shares of Exicom Tele-Systems (Exicom) hit a new high of Rs 461, as they rallied 14 per cent on the BSE in Monday’s intra-day amid heavy volumes.

In the past four trading days, the stock has zoomed 40 per cent after Hubject, the electric vehicle (EV) Interoperability market leader, entered into a strategic partnership with the company. This includes Hubject’s intercharge platform, which will make it easier for EV drivers to find and charge points, and then simply charge when needed.

Exicom is India's largest EV charging and Critical Power solutions manufacturer, present across the entire EV charger value chain with a host of products across both AC & DC charger segments and is spearheading India's transition to sustainable transportation while ensuring the smooth functioning of critical infrastructure.

 

With a footprint spanning India, Southeast Asia, Europe, and the Middle East, and over 70,000 chargers installed, Exicom is at the forefront of shaping the global EV charging landscape.

Hubject simplifies the charging of electric vehicles. Its eRoaming platform connects original equipment manufacturers (OEMs), charge point operators (CPOs), and eMobility service providers (EMPs) to provide standardised access to a charging infrastructure regardless of any network.

Hubject has also established the world's largest eMobility charging network for electric vehicles by connecting over 725,000 charging points and more than 2,250 B2B partners across 63 countries and four continents.

Meanwhile, in the past 13 trading days, the stock price of Exicom has zoomed 84 per cent from the level of Rs 251.35 on June 4. It has more than doubled or skyrocketed 225 per cent from its issue price of Rs 142 per share. The company made stock market debut on March 5, 2024.

Exicom was set up in 1994 for the manufacturing of critical power components, which find applications in the telecom sector. Reliance Jio Infocomm Limited (RJIL), which has been consistently increasing its market share, continues to be one of the largest client, and the company has a long association with RJIL.

The group’s clientele comprises of some of the reputed telecom companies including Skipper Limited, Bondada Engineering Private Limited, and Indus Towers Limited among others. The group's unexecuted order book stood at Rs 360 crore, as on March 31, 2024. This includes orders from tower companies for telecom segment and balance from automobile sector for EV charging segment. It also shows the increasing demand for EV segment, which would result in healthy revenue-mix.

With in house IP, large R&D teams of over 130 engineers, robust product pipeline and pan India service, the management said the company is well-positioned to capture growing EV Charger market in India. EV Charger business grew at 8 per cent in FY24, and supported deployments across all vertical markets including home chargers, network roll out by leading charge point operators, captive fleet charging, and heavy duty vehicle charging.

Exicom’s critical Power business benefitted (60 per cent growth Y-o-Y) from ongoing 5G deployments by Telco’s, replacement of battery assets in filed from lead acid to Li-ion by leading Tower Co’s, and securing projects funded by the Government aimed to creating or upgrading telecommunications network particularly in underserved regions, the management said.

Meanwhile, the prospects of growth for the Indian telecom industry are healthy with the telecom operators upgrading and expanding their network to meet demand for rising data growth with the evolution of new revenue streams.

The EV sector’s growth momentum is expected to continue in CY24 (refers to the period from January 01, 2024 to December 31, 2024), driven by the government’s increased focus on electrification at both the Central and state levels, the potential extension of FAME II, the improving EV ecosystem with a significant increase in charging stations, the envisaged reduction in battery costs leading to the lower total cost of ownership (TCO) compared to ICE, and the development of new models across categories, thus continuing to drive demand for EVs, CARE Ratings said in rationale.