Zicom Electronic

The Railway Budget said that the government will ensure CCTV coverage at all Tatkal counters to prevent abuse of system where passengers are denied tickets. The Public Works Department (PWD) in Delhi has sought close to Rs. 800 crore as the core component of its share in the annual budget which the Aam Aadmi Party (AAP) government is deliberating on. And to cap it all off, the Union Budget has made CCTV much cheaper through duty reduction. Thus from all sides, it has been a bevy of only good news of Zicom, India’s leading electronic security company. The Company offers  a wide range of products and customized solutions including services in Intrusion and Burglar Alann Systems, Ac ss Control Systems, Fire Detection Systems, CCW Surveillance Systems, Central Monitoring Station and Vid Monitoring Station, etc., with focus on retail and SME sectors. Little wonder then the stock has been constantly in the green. In the coming months, we could see more orders coming in for Zicom and that has kept up the momentum in the stock.

On the financial front, for Q3FY16, its net profit halved from Rs.10 crore to Rs.5 crore as topline itself showed a fall of 4% (YoY) at Rs.284 crore. EBITDA came down 6% at Rs.33 crore though margins remained steady at 12%.

Its business in the Middle East has mostly certainly seen some down turn due to the falling crude oil prices. The company said that though it saw no major cancellations, there was lesser or no order intake. It has since then changed it strategy from products to servicing and maintenance.