I am the JaGGI

.....Thinking

[I am the JaGGI @the_jaggi]

@rahul11307091 @amurfalcon1 It's not that big of a mess up rahul. They came back quite strong in FY25, and they would not have been able to cross the FY25 revenues how much ever hard they worked. At the end of the day they are running a business, and growth doesn't happen in a straight line. It's a feature

[I am the JaGGI @the_jaggi]

@rahul11307091 @amurfalcon1 For context, their Aerospace revenues increased from INR 292 Cr in FY24 to INR 537 Cr in FY26. So, they are definitely doing the best work out there. If you see the gross margins post BEL order getting completed, it shot up from 22-24% to 39% (this could compress slightly though)

[I am the JaGGI @the_jaggi]

@rahul11307091 @amurfalcon1 See you need to understand the nature of that order first. They did that order because it was difficult to do. The BEL + IAI order was more for scale. So even though you had low margins, BEL made sure they made the RoCE, which they do not do for other companies.

[I am the JaGGI @the_jaggi]

@rahul11307091 @amurfalcon1 And NADCAP is not for only defence rahul. It's the gateway to get into aerospace revenue.

NADCAP = National Aerospace and Defense Contractors Accreditation Program.

Their aerospace revenues are growing north of 40% 3Y CAGR, which as per my understanding will continue.

[I am the JaGGI @the_jaggi]

@rahul11307091 @amurfalcon1 Look at the gross margin differential between cyient DLM vs centum vs vinyas vs anyone else you will understand the quality of work.

Aerospace is the non-lumpy business and that's growing very fast, and the gross margins are a function of the complexity of the work.

[I am the JaGGI @the_jaggi]

@rahul11307091 @amurfalcon1 Yes that's alright. One year they did not bid for new platforms because of margins. And defence revenues, specifically the ones Cyient DLM caters to are supposed to be lump and program based if you start looking on year on year basis it will not make sense.

[I am the JaGGI @the_jaggi]

@amurfalcon1 You also need to understand that these companies do not come close to Cyient DLM. Moreover, Cyinet DLM has a lock-on avionics and a lock-on European defence. With American defence as an optionality.

[I am the JaGGI @the_jaggi]

@amurfalcon1 As per my analysis, Centum does not hold NADCAP. They only hold AS9100. Only 3 companies in India have NADCAP for circuit card assembly - cyient DLM, Kaynes Tech, and now vinyas. Cyient is the only company in India to have both NADCAP (AC7120 + AC7121).

[I am the JaGGI @the_jaggi]

@amurfalcon1 You are missing Cyient DLM. Not only do they have NADCAP (AC7120) but they also have NADCAP (AC7121) which allows them to do NADCAP box-build that no other Indian EMS can do in Aerospace and defence.

It is the first company to get NADCAP (AC7120) in India.

[I am the JaGGI @the_jaggi]

@AlphaWealth000 More importantly, both BEL & IAI (including IAI-ELTA) are amongst the oldest clients of Cyient DLM.

My request to you would be to correct this.

Part 3/3

[I am the JaGGI @the_jaggi]

@AlphaWealth000 The LRSAM work was done by Cyient DLM for BEL. If you see their defence revenues and then link it to BEL's commentary, it perfectly matches. Moreover, Cyient DLM got a special mention from BEL-ASDN, BEL's naval SBU.

[I am the JaGGI @the_jaggi]

@EquityValueIn 2/2

It is the only company in India to have a lock on the global avionics - Honeywell + thales + Collins Aerospace. Their clients are second to none.

So it's quite perplexing that people miss out on cyient DLM. Is it because screener does not classify them as correctly?

[I am the JaGGI @the_jaggi]

@EquityValueIn So let me get this right. You have not added Cyient DLM, which was amongst the first companies in India to get NADCAP AC7120 (circuit card assembly) in India, and is the only company to have both - NADCAP AC7120 + AC7121, allowing them to do box-builds for A&D clients.

Part 1/n

[I am the JaGGI @the_jaggi]

@andrewpannu sleuth

Thanks

[I am the JaGGI @the_jaggi]

@Marie_Haynes @NotebookLM Actually quite irritating to be the last lot to receive these cool updates @NotebookLM

@GeminiApp also not being able to delete old chats and gemini not being able to use memory function of personal context.

[I am the JaGGI @the_jaggi]

@EquityValueIn Thanks for this.