Company Overview:
Exicom Tele-Systems Limited is an India-based power management solutions provider established in 1994. The company’s two business verticals are critical power solutions and electric vehicle supply equipment solutions. The company designs, manufactures and services DC power systems and Li-ion based energy storage solutions for managing overall energy usage at telecommunication sites and enterprise environment. The company’s EV charger solutions provide smart charging systems for residential, business, and public use. It holds a market share of 60% and 25% in residential and public charging segments as of Mar’23. Additionally, the company has a market share of 16% in the DC Power Systems market and approximately 10% in the Li-ion Batteries market for telecommunication applications.
Key Highlights:
1. Critical power business: The company’s critical power business offers customized DC power systems and Li-ion based Energy Storage Solutions for comprehensive energy management at telecommunication sites and enterprise environment. The company has successfully deployed solutions in 15 countries across South East Asia and Africa. As of Sep’23, the company has deployed 4,70,810 Li-ion Batteries for application in the telecommunications sector. The growth of the telecommunications power industry is driven by increasing demand for mobile data and voice services, adoption of 4G and 5G networks, telecommunications power upgrade projects, and the need for reliable power supply for telecommunications towers.
2. Electrical vehicle supply equipment business: The company’s EV charger business provides smart EV charging products and solutions, including slow AC chargers for residential use and fast DC chargers for businesses and public charging networks. The company’s products meet global standards such as CE and Indian certification requirements. As of Sep’23, it has deployed over 61,000 EV chargers across 400 locations in India. The company differentiates its EV chargers by prioritizing form factor, performance and their ability to work in harsh conditions.
3. Manufacturing facility: The company is vertically integrated with end to-end product development capabilities supported by two R&D centers. It has three manufacturing facilities in India with an annual capacity of 12,000 DC power systems, 44,400 AC and DC EV Chargers and a total builtup area of 1,34,352 sq.ft. At Gurugram facility I, the company manufactures products for both the critical power business and EV charger business. At Gurugram facility II, the company manufactures Li-ion batteries for critical power business. At the Solan facility, the company manufactures AC-DC converters (rectifiers), which form a component of the DCT power systems and are sold to the customers along with the DCT power systems.
Valuation: The company is valued at FY24 annualized P/E multiple of 31.2x at the upper price band on post-issue capital. The company is expanding its manufacturing facility for EV chargers, DC Power Systems and Lithium-ion Battery Assembly in Telangana which will add to the topline. The company also plans to reduce its debt from the fresh issue, which will improve the profitability. The growth for the EV industry looks very attractive going ahead in India, as well the need of telecommunication infrastructure for 5G network will give an edge to the company’s growth in future. We recommend investors to SUBSCRIBE to the issue for the long-term investment horizon.
Click here to download Exicom Tele-Systems Limited IPO Note by SBI Securities
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