Equip yourself with crucial insights into the impending IPO of an EV charging company, covering vital aspects such as the grey market premium and the price band. Stay informed and primed for this impactful market event.
The growing popularity and acceptance of electric vehicles (EVs) have undeniably shaped the landscape of the automotive industry. The increasing affordability and preference for EVs have driven significant growth in the market.
As the world moves towards renewable energy and reducing carbon emissions, the EV market and the top stocks within this sector are poised for continued expansion.
The need for public charging stations has intensified with the growing demand for EVs, aligning with global efforts to reduce carbon emissions and combat climate change.
This heightened interest in the EV industry has caught the attention of investors, particularly in anticipation of the opportunities presented by EV IPOs.
One such company entering the market is Exicom Tele-System, a manufacturer of EV chargers poised to launch its initial public offering.
Founded in 1994, Exicom Tele-Systems Limited specializes in power systems, EV charging solutions, and critical power infrastructure technology. Its EV charger business covers smart charging systems for residential, business, and public charging in India, while its critical power solutions business caters to digital infrastructure technology for energy management in telecommunications and enterprise environments.
With over 6,000 AC and DC chargers deployed in India and Southeast Asia, Exicom’s EV charging solutions are designed to endure challenging environmental and electrical conditions.
The company aims to raise over Rs 4.3 billion through its IPO, with a significant portion allocated to the fresh issuance of shares.
Several factors set Exicom’s IPO apart, including its specialization in the niche EV charging market. Its early entry into the EV charger manufacturing segment has allowed it to capture a substantial market share, boasting 60% and 25% market share in the residential and public charging segments, respectively. Notably, Exicom has already deployed over 35,000 EV chargers across 400 locations in India, reflecting its strong market presence.
Moreover, Exicom has established enduring relationships with its customer base, contributing to its track record of customer loyalty.
The entrance of Exicom Tele-System into the public market signifies the continued growth and potential of the EV industry, offering investors an opportunity to participate in this dynamic and evolving sector.
A Detailed Analysis of Exicom Tele-Systems’ Financial Performance
Revenue Overview
The financial performance of Exicom Tele-Systems has seen some fluctuations in recent years. In FY23, the company recorded a revenue of Rs 7,234 million (m), marking a 14.8% decrease from the Rs 8,489.6 m reported in FY22. Notably, the revenue has shown a compound annual growth rate (CAGR) of 11.3% since FY21.
Bottom-Line Performance
Despite the volatility in top-line figures, the company has exhibited a consistent bottom-line performance. The net profit surged by 23.9% from Rs 51.4 million in FY22 to Rs 63.7 million in FY23, showcasing a remarkable 22.6% CAGR since FY21.
Exicom Tele-Systems Financial Snapshot (2021-23)
| Particulars | 31-Mar-21 | 31-Mar-22 | 31-Mar-23 |
| Revenues (Rs in m) | 5,243.60 | 8,489.60 | 7,234.00 |
| Revenue Growth (%) | – | 61.9 | -14.8 |
| Net Profit (Rs in m) | 34.5 | 51.4 | 63.7 |
| Net Worth (Rs in m) | 2,134.40 | 2,215.70 | 2,320.00 |
Return on Capital Employed (RoCE) and Business Segments
The RoCE witnessed a decline to 10.9% in FY23 from 17.7% in FY22. Additionally, overseas customers contributed 8.8% to the total revenue from operations in FY23. Furthermore, the revenue from the Critical Power Solutions (CPS) business dropped to 68.3% in FY23 from 91.6% in FY22, while revenue from the Electric Vehicle (EV) charger business rose to 31.7% from 8.4% during the same period.
Expansion Plans
Exicom Tele-Systems aims to expand its footprint in the Southeast Asia and European markets, highlighting its strategic growth initiatives.
Comparison with Industry Peers
According to the company’s red herring prospectus, Exicom Tele-Systems’ industry peers play a pivotal role in understanding its competitive standing within the market.
Peer Comparison
| Company | Revenue from Operations (2023) | EPS (Basic) (in Rs) | Return on Net Worth (%) |
| (Rs in m) | |||
| Exicom Tele-Systems | 7,079.30 | 3.4 | 13.4 |
| Servotech Power Systems | 2,784.80 | 0.6 | 13.5 |
| HBL Power Systems | 13,686.70 | 3.5 | 10.4 |
Identified Risk Factors
- Electric Vehicle Supply Equipment Business: The company’s EV charger business is closely linked to the growing adoption of electric vehicles. The success of this segment is heavily dependent on sustained demand for EVs in the market.
- Critical Power Solutions Business: Exicom Tele-Systems faces significant reliance on its top five customers in the Critical Power Solutions business, which have consistently contributed over 50% of revenue in the last three financial years. Any potential loss or reduced purchases from these key customers pose a substantial risk to the overall business and financial performance.
- Revenue Dependence on Indian Telecommunications Sector: Over 50% of the company’s revenue in the last three financial years originates from customers in the Indian telecommunications sector. Adverse changes in this industry could adversely impact Exicom Tele-Systems’ business, financial condition, and operational results.
