It has secured a breakthrough order from a global electronics leader for supply of components for smart devices.
Aequs is a Tier I supplier for leading aerospace names (Airbus, Boeing) and the only fully integrated supplier from India. With increased focus of these majors on India-sourcing, Aequs is well placed to benefit from this trend and sustain significant topline and EBITDA growth in the segment. It has secured a breakthrough order from a global electronics leader for supply of components for smart devices. While capex intensity may rise initially and suppress near-term RoCE, a successful scale-up of the business (like Luxshare) can unlock substantial investor value in the long term. With a USD-dominated topline and Indian costs, we see advantages of a structurally depreciating INR as well.
