Whalesbook
Stock Jumps Amid Strong Results
Exhicon Events Media Solutions' stock has seen a significant climb, gaining approximately 16.5% over two trading days and reaching a high of ₹536.40. The share price has grown by over 107% in the past year. This rise reflects strong investor confidence following its second-half FY2026 operational results, driven by strategic infrastructure developments and a new venture into aviation. The company’s market capitalization is between ₹650-₹772 crore. Exhicon is debt-free and maintains a strong current ratio of 4.42, indicating solid financial health.
New Infrastructure Projects Bolster Venue Portfolio
A key factor in Exhicon's performance is its success in securing major infrastructure contracts. The company was chosen to build Punjab's first dedicated Convention and Exhibition Centre in Mohali, a ₹75 crore Phase 1 project. This 14-acre development, expected to be completed by late 2027, is set to become a significant MICE (Meetings, Incentives, Conferences, Exhibitions) hub in North India. Exhicon also expanded its venue capacity by completing Phase 1 of new exhibition halls at Expo Centre Greater Noida, adding 12,000 sqm. Additionally, the company opened its 7.5-acre Messe Global Convention Centre in Pune, which has already received industry awards. These developments align with India's growing infrastructure sector.
Entry into Aviation Sector with Helicopter Services
Exhicon is expanding into the growing aviation sector through its subsidiary, United Helicharters Private Limited (UHPL). UHPL has received a five-year Air Operator Permit (AOP) from the Directorate General of Civil Aviation (DGCA), allowing it to operate commercial helicopter flights until February 2031. Following this key approval, UHPL secured an important helicopter shuttle contract for the Mandakini Valley to Kedarnath route, after successfully outbidding nine competitors. This move positions Exhicon in India's expanding helicopter charter market, which is driven by business travel, tourism, and emergency medical services, though it faces tough competition and high operating costs.
Balancing Growth with Project Timelines and Risks
While these infrastructure wins build significant long-term assets, projects like the Mohali Centre require substantial investment and will not bring quick profits, with Phase 1 completion not expected until late 2027. The aviation segment is a new area of operation for Exhicon, demanding significant investment and careful management of competition. The company's standalone sales for FY24 were ₹50.24 Cr with a profit after tax (PAT) of ₹7.90 Cr. For H1 FY2025-26, consolidated revenue reached ₹10,260.94 lakhs with PAT of ₹2,211.05 lakhs. Investors should note that Exhicon has limited analyst coverage, making independent assessment of its growth drivers important. The company’s strategy depends on successfully completing large, long-term projects, which carry inherent execution risks and long payback times. The capital needed for these ventures could strain finances if market conditions change. The aviation sector can also be affected by regulation changes, fuel costs, and competition from established players.
Positive Outlook Amidst Challenges
Despite these challenges, Exhicon Events Media Solutions expects continued growth in FY2027, driven by its expanding infrastructure portfolio and diversified services. The company has increased its exhibition booth inventory and temporary infrastructure capacity. With a strong client order book and strategic partnerships, Exhicon aims to benefit from the ongoing growth in the MICE industry and emerging opportunities in aviation.