Exicom Tele-Systems stock hits 5% upper circuit on MoU for EV charging infrastructure

Shares of Exicom Tele-Systems, a prominent Indian manufacturer specialising in EV charging and critical power solutions, hit the 5% upper circuit in early trade on Wednesday, January 8, at ₹250 apiece. The surge followed the company’s signing of a Memorandum of Understanding (MoU) to develop EV charging infrastructure.

The company on Tuesday informed investors through an exchange filing that it had signed a Memorandum of Understanding (MOU) with Mufin Green Infra Limited, a leading provider of turnkey project solutions for EV charging infrastructure.

The MoU will ensure the creation of end-to-end EV charging solutions, including the installation of EV chargers & the setting up of EV charging infrastructure. The collaboration will target customers like charge point operators, bus operators, state utilities, and other end users to accelerate EV adoption with state-of-the-art charging solutions.

Under the MoU, Exicom will manufacture and supply EV charging hardware in compliance with industry standards and future-ready specifications to support the EV ecosystem. The hardware will be equipped with Exicom’s proprietary software, designed with an emphasis on efficiency and convenience, as per the company’s regulatory filing. 

Exicom will provide technical support, maintenance service, warranty coverage, and digital solutions. Both Exicom and Mufin Green Infra Limited will leverage their present and new customers to ensure the collaboration’s success.

Furthermore, Mufin Green Infra Limited will be installing EV charging stations & buses/fleet charging hubs as per customer requirements. They will also onboard new B2B customers to develop state-of-the-art EV charging infrastructure while ensuring compliance with regulatory guidelines for environmental, electrical, and safety requirements.

In addition, the partnership will also leverage existing and future market presence, relationships, and joint marketing efforts and increased visibility—driving business growth and scalability, the filing showed. 

India has taken significant steps to promote clean energy by reducing import duties on specific electric vehicles (EVs) and allocating substantial financial incentives to boost local manufacturing of EVs and their components.

Exicom, known for its chargers that accompany six out of every ten electric cars sold in India, derives most of its revenue from its critical power segment. This division focuses on producing lithium-ion batteries and power systems, catering to telecom companies across India, Southeast Asia, and Africa.

The company’s EV charging segment, launched in 2019, generated ₹243 crore in revenue during the fiscal year 2024, contributing approximately 25% of its total revenue.

With a dominant market share in both residential (60%) and public charging segments (25% as of March 2023), the company has established its presence in the Indian EV charging space.

To expand its operations, Exicom plans to commence EV charger production at its upcoming facility in Hyderabad next year, significantly increasing its manufacturing capacity within the country.

Stock plunges 56% in 6 months

The stock, which was listed on exchanges in March 2024, initially garnered strong buying interest from investors. This led to three consecutive months of gains, during which it reached a record high of ₹530 per share. 

However, the stock has faced significant selling pressure since then, resulting in a 56% decline over the past six months, closing this period in negative territory. Nevertheless, it is still trading 76% above its IPO price of ₹142. 

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