Disc: Nothing is buy or sell recommendation, it is purely with the intent to educate. I have no holdings in this company
This blog will aim to analyse Axiscade technologies, an engineering comoany which is aiming to make a comeback on the back of its management and rise of defense production. Let us begin!
Business history
Early years: Axiscades Technologies traces its roots to Axis IT&T, incorporated in 1990 as an IT and engineering services firm. In its initial years, the company explored diverse tech businesses – from call centers and software products to education and BPO services. By the late 2000s, Axis IT&T sharpened its focus on engineering design services, forging a long-term relationship with Caterpillar in the heavy equipment sector. A pivotal move came in 2009 when Axis IT&T acquired a majority stake (~54%) in CADES, a Bangalore-based engineering design company, to bolster its aerospace and automotive capabilities. This set the stage for integrating high-end engineering domains into its portfolio.
Merger and rebranding: Throughout the early 2010s, the company expanded globally – setting up an offshore development center for a major European aircraft OEM in 2011 and establishing subsidiaries in Canada and China. In 2014, Axis IT&T fully merged with CADES to form the unified brand “AXISCADES,” emerging as a strong engineering services player with about $100 million in revenue and 1,600 employees. This merger combined Axis’s expertise in heavy engineering with CADES’s strengths in aerospace and defense, creating a multi-domain engineering firm. By then, Axiscades was already serving marquee global OEM clients like Airbus, Bombardier, Caterpillar, and Mercedes-Benz.
Recent developments: The merged entity aimed to provide end-to-end product lifecycle solutions and invest in futuristic technologies across its domains. In 2015–16, Axiscades further consolidated its aerospace and defense focus by merging its subsidiary Axis Aerospace & Technologies (ACAT) – a defense and homeland security engineering firm – into the company. This brought in defense-offset program experience (e.g. work with Thales and MBDA on Mirage-2000 upgrades) and added capabilities in military avionics.
Recent Developments (2017 – Present): In 2017, Axiscades acquired an initial 43% stake in Mistral Solutions, a Bengaluru-based defense electronics and product engineering company. This marked a strategic shift towards high-tech defense and embedded systems. The Mistral acquisition was completed in phases by 2019, and by FY2023 Axiscades owned 100% of Mistral. Alongside, Axiscades entered new verticals and geographies: it formed a joint venture with France’s Assystem in 2018 to target energy & nuclear engineering projects in India, opened new engineering centers in France and the UK, and established a U.S. presence (e.g. a North America HQ in Indiana). The company also made bolt-on acquisitions to expand its offerings – for example, acquiring add solution GmbH in Germany in 2024 to strengthen its automotive design expertise, and Epcogen in late 2023 to enhance its capabilities in energy and green technology solutions. Today, Axiscades positions itself as one of India’s leading engineering solutions companies, with over 2,250 employees and a global footprint across North America, Europe and Asia-Pacific. It has evolved from an IT services firm into a diversified, next-generation engineering partner covering aerospace, defense, automotive, heavy engineering, energy, semiconductor and more.
Industry overview
AXISCADES operates in the Engineering Research & Development (ER&D) services industry, which is a fast-growing segment of the technology market. Companies worldwide spend heavily on R&D, and an increasing share of that is being outsourced/offshored. Globally, corporate ER&D spending has been accelerating post-pandemic at ~7-8% CAGR . The global ER&D industry is projected to reach $1.5–1.8 trillion in 2023, on track to grow further to $2.5–3.3 trillion by 2030. Importantly, outsourcing and offshoring are rising: India’s ER&D sector is expected to grow ~12-13% annually, targeting $63–75 billion by 2025, as global firms tap into Indian engineering talent. This macro trend bodes well for AXISCADES, which is part of this outsourcing value chain.
End-User Industries: AXISCADES’s services cater to several verticals – notably Aerospace, Defense, Automotive, Heavy Engineering (Machinery/Industrial), Semiconductor, and emerging areas like Energy and Medical. These end-user industries collectively drive its business, and each comes with its own market dynamics and growth trajectory:
Aerospace (Commercial & Defense Aviation): Aerospace is a core focus for AXISCADES and a high-growth ER&D segment. Global aerospace is in the midst of an upswing after the pandemic slump – for example, Airbus (a key AXISCADES client) is ramping up production toward ~700 aircraft per year and targeting 1,000/year in the mid-term to fulfill a backlog of 3,000+ planes. This huge backlog across the industry provides multi-year visibility for aerospace engineering services. Additionally, aerospace ER&D includes next-gen areas like unmanned systems and space tech, offering growth avenues. (Notably, aerospace & defense together account for ~57% of AXISCADES’ revenue, underscoring its dependence on this sector.)
Defense: The defense sector is seeing robust investment globally and in India. Geopolitical tensions and modernization programs have led to rising defense R&D and procurement budgets. India, in particular, is pushing indigenization (Make-in-India) for defense, opening opportunities for local players like AXISCADES. The company serves defense R&D needs (design of radar, sonar, electronic warfare systems, etc.) and, via Mistral, even participates in hardware production for defense programs. As prototypes transition to production, defense offers high growth – e.g. AXISCADES’ defense production business (through Mistral) delivered ₹112 Cr in FY24 and is guided to reach ₹170 Cr in FY25 and ~₹225–250 Cr by FY26. Programs like the Indian LCA Tejas fighter and Sukhoi-30 upgrades are large opportunities on the horizon (potential supply content of ~₹8 Cr per aircraft for AXISCADES) which could ramp up from FY27 onwards. In short, defense is expected to be a major growth driver as India’s indigenous defense projects scale up.
Automotive: The automotive industry is a significant part of global ER&D – accounting for roughly 20–25% of overall ER&D spend (due to high R&D intensity in vehicles, especially with electric and autonomous technologies). AXISCADES entered automotive engineering a few years ago and sees it as a long-term growth driver. Industry-wise, automotive R&D is being fueled by the shift to Electric Vehicles (EVs), autonomous driving systems, and connected car tech – McKinsey estimates automotive software/content will continue to surge as a share of vehicle value. However, the sector also faces near-term headwinds in certain regions: for instance, Europe’s traditional OEMs are under pressure from rising EV competition. AXISCADES has felt this pinch: its European auto business (largely in Germany) is currently facing a slowdown – Chinese EV makers’ entry has forced Volkswagen (its major client via addSolution GmbH) to cut production at some plants . Thus, while the auto ER&D market globally is expected to grow (as cars become “computers on wheels”), AXISCADES’ near-term outlook in automotive is cautious – management expects the auto segment to be flat in FY25 with a modest recovery by FY26.
Heavy Engineering (Industrial Machinery & Equipment): This includes industries like construction and mining equipment, agriculture machinery, industrial products, etc. Historically, heavy machinery has been one of the larger verticals in ER&D. In fact, Machinery along with Aerospace and Automotive accounted for ~42% of global ER&D spend as of mid-2010s . Growth in this vertical tends to follow industrial cycles – it saw double-digit ER&D growth in 2009–14, then slower growth around 2-4% in later years . Currently, trends like Industry 4.0 (smart factories, IoT), automation, and the push for more efficient and sustainable industrial equipment are driving new engineering investments. AXISCADES’s heavy engineering business (e.g. providing design and modeling support for heavy machinery) is more mature and was flat in recent years . The company is working to improve profitability here by moving up the value chain (embedding more digital and electronics into traditional mechanical services) . With global infrastructure spending picking up and industry capex cycles turning, this segment could see moderate growth, but likely lower than aerospace or digital-centric areas.
Semiconductor & Product Engineering: The semiconductor industry is extremely R&D-heavy – leading chip companies invest a significant portion of revenue (15-20%) into R&D. As a result, ER&D services in semiconductor (e.g. chip design, embedded software) are in demand. AXISCADES, through Mistral, has a presence in this domain, working with top-tier chipmakers like Texas Instruments, Qualcomm, and Nvidia . These engagements typically involve developing board support packages, firmware, and reference platforms around the clients’ silicon – essentially helping semiconductor firms enable end-use applications for their chips. The global semiconductor engineering services market has strong prospects given the proliferation of chips in everything from cars to IoT to defense systems. For instance, aerospace and automotive semiconductor content is growing rapidly, and AI chips are a new frontier. AXISCADES’ semiconductor/product engineering division achieved ₹125 Cr revenue in FY24 and boasts high margins (~30% in consulting work) . There was a short-term dip in this business due to an inventory glut (clients adjusting stock of development boards), but growth of 10–15% annually is anticipated as those issues ease . Overall, semiconductor ER&D is a strategic area since it complements AXISCADES’ other verticals (e.g. avionics, automotive electronics).
Other/Emerging (Energy, Medical): AXISCADES has been expanding into energy (oil & gas and renewables) and had some presence in medical devices. Energy is a newer segment (bolstered by the recent Epcogen acquisition) which did ₹33 Cr in FY24 . With the global focus on renewable energy and smart grids, this segment is expected to grow fast (the company noted 51% YoY growth in energy in FY23 ). For example, AXISCADES is involved in a cutting-edge Liquid Air Energy Storage project in the UK via High-view Power, and is opening a Dubai office to pursue Middle East oil & gas clients . Meanwhile, the company also serves medical & healthcare equipment makers to some extent (e.g. engineering support for medical devices), though this is not yet a large revenue driver. Both energy and med-tech offer diversification as future growth avenues.
Business segments
Automotive
In the automotive segment, Axiscades provides end-to-end vehicle engineering and product design services. This includes body-in-white (BIW) and chassis design, powertrain engineering, interiors/exteriors, and electrical/electronic systems integration. The company has built capabilities in advanced driver-assistance systems (ADAS), telematics, infotainment, and even prototyping and manufacturing support for automotive components. Mercedes-Benz has been cited as a client in the company’s early growth phase, and the firm’s German subsidiary (AXISCADES GmbH, boosted by the add solution acquisition) likely serves major German auto OEMs. Strategic partnerships in this segment often involve multi-year engineering design contracts and vendor relationships for new vehicle development programs.
Automotive has been a high-growth vertical for Axiscades as global OEMs increasingly outsource design and simulation work. However, Axiscades has been facing problems due to the slowdown of the European economy (which has led to a lot of problems for Volkswagon, a primary customer) and the rise of Chinese car manufacturers. It remains to be seen on how they will tackle this slowdown, but their diversity in verticals should help.
Heavy Engineering
The heavy engineering segment (also referred to as Off-Highway and Industrial) covers engineering services for industrial machinery, construction equipment, agricultural/off-road vehicles, and related heavy equipment. Axiscades’ work in this arena spans mechanical design, product engineering, value engineering (cost optimization), and support for product lifecycle management (PLM) systems. It has expertise in structures and hydraulics design, engine/powertrain systems for off-highway vehicles, and custom machine design.
Historically, heavy engineering was a foundational business for Axiscades. A marquee client is Caterpillar Inc., with whom the company had a long-standing relationship providing engineering design and R&D support.
In recent times, heavy engineering has faced headwinds due to cyclical low capital expenditure in industrial sectors. To reignite growth, the company is pivoting this segment towards more digital and value-added services rather than pure staff augmentation. Management has indicated a focus on digitization, automation, and electrification in heavy engineering – aligning with trends like Industry 4.0 in manufacturing and the electrification of off-highway vehicles.
Semi conductors
The semiconductor segment of Axiscades came to the forefront with the Mistral acquisition. Mistral has a Product Engineering Services division that caters to semiconductor firms and high-tech device makers. In this business, Axiscades (via Mistral) offers chip design support, embedded software development, FPGA/board design, and end-to-end system integration for electronics products. Essentially, the company can take a concept from “chip to product,” bridging the gap between silicon design and a market-ready device. Specific services include hardware board design, developing BSPs and device drivers for chips, middleware integration, and product prototyping and testing.
The semiconductor and high-tech segment is at an inflection point for Axiscades. With the global boom in electronics and India’s push for indigenous semiconductor capabilities, Axiscades is repositioning Mistral as a “Chip-to-Product” company. Post-restructuring, Mistral’s vision is to generate ~40% of its business from these hyper-growth tech sectors (and 60% from defense). A key strategy is to capitalize on Edge AI opportunities – i.e. helping clients add AI/ML capabilities to their devices. With the rising adoption of heterogeneous SoCs (CPU+GPU+NPU) and on-device AI, many OEMs are looking to integrate GenAI (Generative AI) enablement services into their products, and Axiscades is positioning to fulfill that need.
Axiscades (Mistral) often engages with clients right from the prototype stage of electronics development. One notable operational approach is the “concept to deployment” cycle it follows: starting with requirements and system architecture design, then building prototypes and conducting independent testing, and finally assisting in manufacturing and product launch.
Aerospace
Axiscades has built a strong presence in the aerospace sector by offering comprehensive engineering services that span the entire aircraft lifecycle—from concept and design to certification support and aftermarket solutions. Its capabilities include airframe structural design and analysis, aero-systems engineering (fuel, hydraulic, and electrical wiring), and avionics hardware/software services. The company leverages industry-standard engineering tools such as CATIA, NX, Nastran, and Patran for mechanical design and simulation, and follows aerospace-specific guidelines (e.g., AS9100, DO-178C, DO-254) to ensure safety and quality. Additionally, Axiscades provides aircraft interiors and retrofit engineering, technical publications (maintenance manuals, digital interactive manuals), and manufacturing support (tooling, jigs, fixtures) to help aerospace OEMs reduce development costs, accelerate time-to-market, and maintain high compliance standards.
The company’s customer base includes major aircraft manufacturers and Tier-1 suppliers in both commercial and defense aviation. Notably, Axiscades has a long-standing partnership with Airbus, setting up dedicated engineering centers in India and Europe to support fuselage design and various systems for the A320, A330, and A350 platforms. It also works with other key players like Boeing, Bombardier, and engine or nacelle integrators (e.g., Safran, Spirit AeroSystems), although specific names are often undisclosed. By combining design expertise, advanced simulation tools, and strong global delivery, Axiscades supports these aerospace customers in areas such as structural analysis, avionics development, technical documentation, and post-production modifications—ultimately serving as a one-stop engineering partner across civil, military, and business jet segments.
Over the past few years, Axiscades’ aerospace vertical has experienced steady double-digit growth, buoyed by multi-year projects with key OEMs and increased outsourcing of high-end design tasks. Even during industry-wide challenges—such as the pandemic’s impact on commercial aviation—Axiscades maintained momentum by diversifying into defense-related aerospace work and expanding its footprint in Europe and North America. With Boeing struggling, Airbus is flooded with orders and hence, it is Axiscades that stands to benefit a lot.
There is the energy segment which has recently been added and an acquisition in the form of Epcogen. Due to the length of the blog, We will focus on the key thesis dirver instead: Defense.
Defense aka Mistral Solutions
Axiscades pursued Mistral to establish its position in the high-value defense and embedded systems domain. Prior to acquisition, Axiscades’ defense business was largely services-oriented (e.g. engineering design for defense OEMs, offset execution) with limited proprietary products. Mistral, on the other hand, brought 20+ years of product development experience with award-winning designs in defense electronics and embedded tech. The strategic logic was to move up the value chain – from providing design services to owning products and IP that could be repeatedly sold in defense programs. Mistral operates at the cutting edge of technology (radar systems, C4ISR, etc.), and acquiring it gave Axiscades access to indigenous product lines and a foot in the door of India’s defense modernization projects. Crucially, defense electronics projects have a long gestation (years of prototyping and trials) but, once successful, lead to exclusive production orders for decades. Axiscades recognized this and timed the Mistral acquisition to coincide with a potential inflection point: many of Mistral’s prototypes were nearing production acceptance. As one analysis noted, “We want to invest in a defense business at the inflection point where defense production is going to become larger… This is exactly the point where Mistral Defense is”. In short, Axiscades saw Mistral as a catalyst to transform its defense vertical from an engineering services model to a product-backed, high-margin business as Mistral’s prototypes (radars, EW systems) convert into production orders. The acquisition also expanded Axiscades’ reach into homeland security (Mistral had offerings like mobile surveillance control centers and drone-based solutions) and the semiconductor domain (about 40% of Mistral’s business was in semiconductor/embedded services). This diversification aligned with Axiscades’ strategy of de-risking the business and tapping new growth areas (e.g., the semiconductor push and Make in India for defense electronics).
Prototype-to-Production Transition: A key aspect of Mistral’s value is its track record in developing prototypes for mission-critical defense systems, which are now transitioning to production. During the prototype phase, Mistral engaged in R&D for systems like radars, electronic warfare units, and avionics LRUs (line-replaceable units). Prototyping can take 4–7 years with modest or even negative margins, but once a design is proven and inducted, the vendor becomes the sole supplier for its production lifecycle. Mistral had successfully built “design wins” in several Indian defense programs: for example, it developed the Medium Power Radar (Arudhra) in collaboration with DRDO and recently received a ₹90 Cr production order for radar units. It is also involved in the Ashwini Low-Level Transportable Radar (LLTR) program, and is bidding for production orders there. Another prototype-to-production case is the Netra Airborne Early Warning (AEW&C) system – Mistral supplies the Radar Processing Units for this indigenous AWACS; as India orders more Netra systems, Mistral stands to supply these components (indeed, it is poised to supply them via Adani Defence, the lead integrator for the next phase). By acquiring Mistral, Axiscades positions itself to ride this wave of production orders. The margins in production can be significantly higher (25–40% EBITDA) and last 15-30 years, compared to low, project-based margins in R&D. This trend is expected to accelerate as marquee programs like LCA and Su-30 upgrades hit volume production around FY2025–FY2027. In summary, the Mistral acquisition is enabling Axiscades to participate fully in the “prototype-to-production” lifecycle, capturing value not just in designing the solution but in the long-term supply of the solution.
Role in Tejas and Sukhoi Opportunities: Mistral/Axiscades’ contributions to India’s fighter aircraft programs exemplify the acquisition’s impact. For the LCA Tejas (India’s indigenous light fighter), Mistral supplies parts of the avionics – such as single-board computers and video processing modules – and is also expected to supply components for the Uttam AESA radar (like the exciter-receiver and processing units) which will be fitted on Tejas Mk1A and Mk2. As Tejas moves into large-scale production (the IAF has ordered 180 Mk1A/Mk2 to be delivered by 2032), Mistral stands to earn roughly ₹8–9 Cr per aircraft in content, translating to a ₹1,200 Cr opportunity over the next 8 years. However, this will kick in mainly from FY2027 onward (since initial Mk1A aircraft use imported radar, and indigenous Uttam radar integration starts from the 21st jet). Similarly, for the Sukhoi Su-30MKI upgrade program – an ambitious mid-life upgrade for ~100+ jets – Axiscades (through ACAT/Mistral) is aiming to supply upgraded avionics and EW components. This program is estimated as a ₹2,000 Cr opportunity and is expected to ramp around FY2026–FY2028, with potentially ~₹8 Cr of Axiscades content per aircraft upgrade
The company’s management has explicitly highlighted these two programs as large drivers of future defense revenue, with projections that when Tejas and Su-30 upgrades are at full rate (24 Tejas and 50 Su-30 upgrades per year), defense production revenue could jump dramatically, making FY27–FY28 “step-change years” for Mistral. Beyond fighters, Mistral is involved in the DRDO Rustom-II UAV program (providing communication and payload electronics), and it has expertise in surface-ship sonar and communication systems that slot into naval upgrades. All these avenues were opened to Axiscades via Mistral. In essence, the acquisition placed Axiscades inside the critical indigenous defense projects of India – something that would have been hard to achieve as an outsider purely offering services.
Mistral’s Products and Strategic Importance: Mistral brought a rich portfolio of products/IP which are strategically important in their niches. Some notable products and solutions include:
Radar Systems: Mistral is a key developer of radar sub-systems like the Arudhra Medium-Power Radar(for which it provides processing and power distribution units) and is engaged in the Ashwini LLTR. These radars are vital for the IAF’s surveillance capabilities, and having a role in them gives Axiscades a stake in India’s radar self-reliance initiative. Mistral also recently delivered an X-Band radar module for an autonomous underwater vehicle, underscoring its ability to design high-frequency, ruggedized radar for cutting-edge applications.
Electronic Warfare: Mistral’s expertise in EW is embodied in its Direction Finding (DF) systems, which are used to intercept and locate signals – these have been deployed on multiple Indian defense platforms (ground, air, and sea) as the prime solution for signal intelligence. It also has products for IFF (identification friend-or-foe) and telemetry, critical for secure communications and missile testing. This capability aligns with India’s drive to have home-grown EW systems for its fighters and drones.
Homeland Security Solutions: Mistral developed turnkey solutions like Mobile Command & Control vehicles (the “MCOV” for state police forces) which integrate surveillance, communication, and command systems on a single platform. For example, Axiscades recently delivered an MCOV to Gujarat Police, demonstrating its role in internal security tech. These products enhance Axiscades’ portfolio for homeland security, a growing market in India and developing countries.
Embedded Products & IP Cores: Over the years, Mistral created several reference designs and IP blocks(like DSP algorithms, FPGA IP for signal processing) that can be licensed or re-used in projects. It won awards such as the NASSCOM Innovation Award (2008) for its products, indicating their uniqueness. Strategically, these products allow Axiscades to engage in product-based sales (earning revenue from hardware/software sales, not just manpower billing). This is a significant strategic shift – owning proven products like radar systems or anti-drone systems makes Axiscades a defence OEM in its own right, which could unlock larger contract values and export opportunities.
Semiconductor Services Synergy: Mistral’s semiconductor services (platform development, board design, etc.) complement its defense products. One strategic goal post-acquisition is to expand Mistral’s semiconductor line of business, especially in the Edge AI domain. Mistral’s core competence in marrying hardware and software is being used to address emerging needs of chip companies (e.g., helping them with product hardening, certification, and pilot production of devices). This is strategically important because it places Axiscades in a sweet spot to serve the booming demand for AI-enabled embedded products, multiplying cross-sector opportunities (for automotive AI, consumer electronics, etc.).
Recent Management change: long needed Catalyst
The company has had a shift in management.
In October 2024, the company brought back Dr. Sampath Ravinarayanan as a Non-Executive Director on the Board. Dr. Ravinarayanan is a veteran – he was a pioneer of Axiscades (served as CEO & Chairman until 2014) and is highly respected in India’s aerospace & defense industry. His return (approved Oct 12, 2024) was a clear signal of the company doubling down on its aerospace-defense focus, as he had deep domain expertise and had led the company during its formative aerospace wins (like the Airbus fuselage project and Mirage-2000 upgrade). Shortly thereafter, there was a top management shuffle: Mr. Arun Krishnamurthi stepped down (exact timing not publicly stated, but by Jan 2025 he was no longer MD/CEO), and Mr. Murali Krishnan was introduced as the new CEO (interim) of Axiscades and CEO of Mistral Solutions . Murali Krishnan is an Axiscades veteran who had worked with the company previously and possesses vast experience in mechanical engineering and system integration. His appointment brought operational continuity and technical depth, especially to drive the integration of Axiscades and Mistral businesses. Finally, in January 2025, Axiscades announced the appointment of Mr. Alfonso Martinez as the new Group CEO & Managing Director, effective 20 January 2025. Martinez is an industry leader with over 25 years of global experience in engineering and technology services, including significant exposure to aerospace, defense, telecom, and automotive sectors. He holds an engineering degree and an MBA, and has a track record of leading multidisciplinary teams and driving growth in international markets. His joining signals Axiscades’ ambition to expand its global footprint and solidify its position as a leader in engineering services and “deep tech” solutions. In conjunction with his hiring, Dr. Sampath Ravinarayanan has been elevated to Chairman of the Board (Non-Executive) as of January 28, 2025 (as per board resolutions). This new leadership structure – with Alfonso Martinez at the helm as CEO & MD, and Dr. Ravinarayanan providing strategic guidance as Chairman – blends global industry expertise with home-grown domain knowledge.
Thesis pointers
Lets quickly wrap things up.
Management change: The new management is a very experienced tea, and from the look of it is making the right moves. Axiscade was always ahead in positioning itself in sunrise sectors but post that, failed to do anything substantial. Hence, it has a lot of potential, and this management change is what it might just need to cross the finish line.
Defense as a higher mix: The management is aiming to significantly increase the defense mix, where it is 60% of the whole revenue mix. That is a very ambitious number and if achieved, can lead to significant margin expansion and growth. The management is aiming for a 300-350 basis point expansion.
High growth: The company is aiming to grow its topline by 50% in FY26 and that means, can generate a PAT of 160-170 crores. that's a very strong growth guidance and the current results have been a decent proof of the management walking the talk.
Multiple optionalities: If any of these optionalities worked out, can play a huge role in generating revenue for the company. These optionalities include: Tejas/Sukhoi opportunity, drones, counter drone systems, homeland security etc.
Risk factors
Spread across multiple sectors: The business has too many verticals, which helps it stay diversified but it is difficult to maintain a steady growth rate for all.
Key man risk: The company had faced troubles before, where it had to rely on a few individuals on its top board, until npw. The new management has stabilised operations and its much more streamlined now. This way, the possibility of this happening is low but still remains in the future.
B2G: The defense side dervies a lot of its revenue from government entities. Hence, there remain chances of payment delays. Moreover, a strategic shift from the government which does not align with Axiscade will mean that the growth prospects are severely hampered.
Valuations and technicals
On the technicals front, it is rare to see a company making all time highs. Currently, Axiscades broken its near time high and has been on the rise for the past few sessions. In a bearish environment such as the one we are in, this suggests a lot of strength.
On the valuations side, if it does reach a 160 crore PAT, it is at about 22 times forward multiple, which is quite cheap. However, the key monitorable is the execution, as the 160-170 crore PAT is a steep target.
That marks the end of my blog, i hope it was a good read
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