Elsight Ltd (ELS)
Team, Would love your thoughts on ELS. What a trajectory, but seems expensive? Better ways to play the defence/tech thematic? Regards, Young
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Hi Young,
Defence is an extremely “Hot” topic/sector at present which can bring with it high risk as we’ve seen with lithium and weight loss stocks over recent years. Elsight Ltd (ELS) has rapidly become a $500mn business with almost no revenue:
- As of the end of the 2024 financial year, ELS reported annual revenue of $US2.03 million, with over 50% from defence but it still posted a net loss of $US3.87 million for 2024.
However, ELS has experienced a significant surge in its share price, primarily attributed to substantial defence contracts and the growing demand for its flagship product, Halo; a compact, carrier-agnostic connectivity device designed for unmanned aerial vehicles (UAVs).
- In April/May ELS secured a ~$11.5 million contract with a European defence customer, marking a significant milestone in its revenue growth.
Its hard to chase ELS here but as we’ve seen with DroneShield (DRO) once the first few contracts arrive the rest start to follow. If we were long we would consider taking part profit and running the balance -hot stocks can often get much hotter!
