India, June 30 -- India's defence indigenisation push has minted several multibagger stories over the past few years - but not every name in the sector has held its gains. Some have corrected sharply, leaving investors wondering whether the fundamentals ever justified the euphoria, or whether the selloff has now gone too far in the other direction. One such stock, a Bengaluru-based defence electronics play, sits at that uncomfortable crossroads today.

DCX Systems Limited has had a rough ride on the bourses over the past year. The stock has fallen sharply from its all-time high level- down roughly 55% - even as the company keeps winning orders and building its pipeline. That gap between market pessimism and operational progress is exactly...