At a Glance
AXISCADES has turned from an obscure engineering services player into a defense-tech darling. With 275% YoY profit growth in Q4FY25, zero dividend, and a ₹9,000 Cr topline ambition, it’s the kind of company where the stock runs faster than the fundamentals—but the fundamentals are finally catching up.
1. 🚀 Introduction with Hook
What do you get when you cross a midcap IT company, a defense supplier, and a 10-year-old startup still figuring out margin math?
Answer: AXISCADES Technologies Ltd — India’s homegrown engineering solutions company with global ambitions, a French partnership, and quarterly results that make even HAL blush (okay, almost).
The company’s pitch is simple:
👉 “We don’t build missiles. We help those who do.”
2. 🏗️ Business Model (WTF Do They Even Do?)
AXISCADES is a Product Engineering Solutions company operating across:
- ✨ Embedded software and hardware
- ⚙️ Mechanical engineering and system integration
- 📘 Technical publications
- 🔧 Aftermarket support for aerospace and defense clients
- 🛰️ Digitization, test solutions, and manufacturing design
Its clients include global OEMs, Indian PSUs, and Tier-1 defense majors like MBDA, Indra, and BEL.
Through its subsidiary Mistral, it’s deep into:
- Radar systems (like DCP1000 module)
- Space surveillance (via Aldoria partnership)
- Air defense computing (Altera collab)
Think of it as India’s answer to Booz Allen Hamilton… if Booz Allen had to submit vendor forms to DRDO every week.
3. 📈 Financials Overview – Profit, Margins, ROE, Growth
Let’s talk numbers. But not the “we’ll turn EBITDA positive by FY50” kind. Actual numbers:
| FY | Revenue (₹ Cr) | PAT (₹ Cr) | OPM | ROE |
|---|---|---|---|---|
| FY21 | 524 | -21 | 12% | -5.7% |
| FY22 | 610 | 23 | 12% | 5.9% |
| FY23 | 822 | -5 | 18% | -1.3% |
| FY24 | 955 | 33 | 14% | 7.8% |
| FY25 | 1,031 | 75 | 14% | 12.6% ✅ |
💥 5Y Profit CAGR = 21%
💥 3Y PAT CAGR = 49%
💥 1Y PAT Growth = 137%
💥 Revenue Target = ₹9,000 Cr by FY30 (from ₹1,031 Cr today)
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
- Current Price: ₹1,455
- Book Value: ₹153 → P/B = 9.5x 😬
- EPS (FY25): ₹17.63 → P/E = 82.5x
- Free Cash Flow Yield: 🤷♂️ (tiny)
- Dividend Yield: 0%
- Historical ROE (10Y avg): 5%
So basically:
“We don’t believe in dividends. We believe in dreams.”
Valuation says: already priced for perfection.
5. 🔥 What’s Cooking – News, Triggers, Drama
Buckle up for the next-gen defense tech saga:
- 🤝 MBDA Partnership: Joint facility for missile subsystem integration.
- 👁️ Indra Deal: Building aerospace surveillance systems in India.
- 🛰️ Aldoria Tie-up: Space situational awareness (imagine Google Maps but for satellites).
- 🧠 New Deputy CEO and COO: Leadership rejig aimed at scaling ops.
- 📞 Concall Vibes: $1 Billion revenue by FY30. That’s a 7x jump. Ambitious? Definitely. Impossible? Maybe not.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Borrowings (₹ Cr) | 346 | 319 | 256 ✅ |
| Reserves | ₹319 Cr → ₹628 Cr ✅ | ||
| Equity Dilution | 19 Cr → 21 Cr (minor) | ||
| Assets | ₹904 Cr → ₹1,127 Cr | ||
| Fixed Assets | ₹312 Cr → ₹406 Cr |
🧨 Debt is falling. Equity is rising. Balance sheet is cleaning up faster than SEBI’s SME IPO approvals.
7. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Change |
|---|---|---|---|---|
| FY23 | ₹71 Cr | -₹199 Cr | ₹133 Cr | ₹4 Cr |
| FY24 | ₹79 Cr | -₹162 Cr | ₹64 Cr | -₹19 Cr |
| FY25 | ₹88 Cr | ₹9 Cr | -₹100 Cr | -₹3 Cr |
🧮 Capex funded via internal accruals now. Healthy, but FCF still patchy.
8. 📊 Ratios – Sexy or Stressy?
| Metric | Value | Comment |
|---|---|---|
| ROE | 12.6% | Decent for defense-tech |
| ROCE | 13.6% | Improving |
| OPM | 14% | Stable |
| Debtor Days | 107 | High – PSU clients, slow payments |
| Cash Conversion Cycle | 111 days | Bit stressy |
9. 💥 P&L Breakdown – Show Me the Money
Q4 FY25 Snapshot:
- Revenue: ₹268 Cr
- PAT: ₹31 Cr (275% YoY growth)
- EBITDA Margin: ~14%
- EPS: ₹7.24
🔥 FY25: Best year ever. From a loss of ₹5 Cr in FY23 to ₹75 Cr PAT in FY25.
10. 🤼 Peer Comparison – Who Else in the Game?
| Company | P/E | ROCE | PAT FY25 (₹ Cr) | OPM |
|---|---|---|---|---|
| HAL | 40x | 34% | 8,360 | 31% |
| BEL | 57x | 39% | 5,321 | 29% |
| Zen Tech | 62x | 37% | 280 | 38% |
| Data Patterns | 75x | 22% | 222 | 39% |
| Astra Microwave | 64x | 19% | 154 | 26% |
| AXISCADES | 79x | 14% | 75 | 14% |
👉 Valuation at Zen/Data Patterns level. But profit, scale, and return ratios are much lower. Big expectations baked in.
11. 📦 Miscellaneous – Shareholding, Promoters
- 📉 Promoter holding: Dropped from 66.5% to 59.5% in 2 years
- 🧑💼 Public holding: 37.8% → ~tripled in number of retail shareholders
- 🏦 FIIs + DIIs: Marginal increase
- 💼 No dividends. No buybacks. No bonus. They believe in rocket science, not rewards.
12. 🔮 EduInvesting Verdict™
AXISCADES = HAL Junior with startup attitude.
✅ Strong pipeline
✅ Defense-tech focus
✅ Rising profits, expanding partnerships
BUT…
⚠️ P/E of 80+
⚠️ Book value 9.7x
⚠️ Zero dividends, high promoter sell-down
📊 FV Range: ₹950 – ₹1,100 (based on 25–30x FY25 EPS of ₹17.6)
Current Price = ₹1,455
So, yes, the stock’s already priced for “₹9,000 Cr by 2030”.
This could either be India’s next HAL-Zen-Tech combo, or another ₹1,000-Cr dream with a ₹10,000-Cr valuation.
✍️ Written by Prashant | 📅 07 July 2025
Tags: AXISCADES, defense tech, MBDA, Zen Technologies, aerospace, PSU, HAL, engineering, smallcap, Screener, valuation
