Latest news with #DixonTechnologies'
Time of India
4 days ago
- Business
- Time of India
'Things are easing': India flexible on Chinese investments in electronics; Here's all you need to know
India maintains openness towards partnerships between domestic firms and Chinese companies, particularly in the electronics sector, according to a government official on Friday. Tired of too many ads? go ad free now China dominates electronics manufacturing with a 60% share globally, making it a key player in the industry, an official told PTI, noting that ties between India and China are beginning to ease. "Things are easing (between India and China). There are signals. Tourist visas have been opened. In electronics, 60% of manufacturing takes place in China. So, there has to be some sort of collaboration," sources told the agency in response to a query on the government's approval for Dixon Technologies' joint venture with a Chinese firm. Dixon Technologies has received the green light to set up a JV with China's Longcheer and is also in talks with other Chinese firms for similar joint ventures. The company has entered into distinct agreements with Chinese electronic component manufacturers Chongqing Yuhai Precision Manufacturing Co Ltd and the Indian subsidiary of Kunshan Q Technology to produce and sell electronic components for devices including mobile phones and laptops. Additionally, the company is developing a joint venture with Chinese smart device manufacturer Vivo.
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Business Standard
6 days ago
- Business
- Business Standard
Dixon Tech Q1 beats estimates: Check brokerage views, stock strategy here
Brokerages on Dixon Technologies: Dixon Technologies delivered a strong June quarter (Q1FY26) performance, with brokerages highlighting robust outperformance across key metrics, driven primarily by the mobile and EMS segments. The company reported a 95 per cent Y-o-Y growth in revenue and a doubling of net profit, beating most street estimates. While Ebitda margins were slightly down, analysts see strategic levers in place to support medium-term expansion. Domestic brokerage Nuvama Institutional Equities noted that Dixon Technologies once again posted a strong quarter, with revenue, Ebitda, and PAT growth of 95 per cent, 95 per cent, and 68 per cent, respectively, each surpassing their estimates. The strong show was led by a 125 per cent Y-o-Y jump in the mobile segment's revenue and 131 per cent Ebitda growth. The brokerage highlighted that Dixon Technologies retained its mobile volume guidance (42-43 million and 65-67 million units including the Vivo JV) and elaborated on component-related JVs. These include tie-ups for camera modules, enclosures, and precision components aimed at participation in the ECMS scheme. Track Stock Market LIVE Updates While Nuvama acknowledged concerns about potential margin pressure in H1FY27 following the expiry of the PLI scheme in March 2026, it underscored management's confidence in achieving a 130-150 basis points (bps) margin expansion over the medium-term. It maintained a 'Hold' rating with a June 2026 target price of ₹16,100, citing fair valuation. Motilal Oswal also highlighted the strong beat across revenue, Ebitda, and PAT, with the mobile segment again being the standout performer. The integration of Ismartu, improved exports, and higher client volumes drove robust growth. The brokerage stressed upon Dixon Technologies's two-pronged strategy, including strengthening client relationships through JVs and enhancing backward integration via component partnerships. Motilal pointed to the company's strategic alliances – including a display facility with HKC, camera modules with Qtech, and precision components with Chongqing Yuhai – as key steps toward improving Dixon Technologies' margin profile and boosting customer stickiness. Additionally, the JV with Longcheer and Vivo is expected to provide incremental volume growth. Factoring in the strong outlook, Motilal Oswal raised its FY27 estimates by 10 per cent and maintained a 'Buy' rating with a revised target price of ₹22,100 (₹20,500 earlier) based on DCF valuation. Emkay Global echoed a similarly positive tone, noting that Dixon Technologies' revenue growth beat consensus estimates, led by strong performance in the mobile and EMS segments. The brokerage reaffirmed its confidence in Dixon's mobile volume guidance for FY26 and FY27 and highlighted the management's reiteration of 120-150bps margin expansion in the mobile vertical, despite PLI-related headwinds. Emkay sees the company benefiting from scale, strong client relationships, and backward integration. The management's commentary on diversifying into PCBA for industrial and automotive applications was also seen as a positive trigger for Dixon Technologies' next phase of growth. While Emkay slightly cut its DCF-based target price to ₹19,000 (to reflect minority interest from new and upcoming JVs), it maintained a 'Buy' rating, citing sustained competitive advantages and margin expansion drivers. That said, while the impending expiry of mobile PLI benefits poses a risk to margins, brokerages remain optimistic about Dixon Technologies' growth trajectory. Strategic JVs, robust mobile volumes, and a clear focus on backward integration are seen as key enablers of long-term value creation.
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Business Standard
6 days ago
- Business
- Business Standard
Dixon Tech Q1 beats estimates; analysts upbeat on mobile gains, JV strategy
Brokerages on Dixon Technologies: Dixon Technologies delivered a strong June quarter (Q1FY26) performance, with brokerages highlighting robust outperformance across key metrics, driven primarily by the mobile and EMS segments. The company reported a 95 per cent Y-o-Y growth in revenue and a doubling of net profit, beating most street estimates. While Ebitda margins were slightly down, analysts see strategic levers in place to support medium-term expansion. Domestic brokerage Nuvama Institutional Equities noted that Dixon Technologies once again posted a strong quarter, with revenue, Ebitda, and PAT growth of 95 per cent, 95 per cent, and 68 per cent, respectively, each surpassing their estimates. The strong show was led by a 125 per cent Y-o-Y jump in the mobile segment's revenue and 131 per cent Ebitda growth. The brokerage highlighted that Dixon Technologies retained its mobile volume guidance (42-43 million and 65-67 million units including the Vivo JV) and elaborated on component-related JVs. These include tie-ups for camera modules, enclosures, and precision components aimed at participation in the ECMS scheme. Track Stock Market LIVE Updates While Nuvama acknowledged concerns about potential margin pressure in H1FY27 following the expiry of the PLI scheme in March 2026, it underscored management's confidence in achieving a 130-150 basis points (bps) margin expansion over the medium-term. It maintained a 'Hold' rating with a June 2026 target price of ₹16,100, citing fair valuation. Motilal Oswal also highlighted the strong beat across revenue, Ebitda, and PAT, with the mobile segment again being the standout performer. The integration of Ismartu, improved exports, and higher client volumes drove robust growth. The brokerage stressed upon Dixon Technologies's two-pronged strategy, including strengthening client relationships through JVs and enhancing backward integration via component partnerships. Motilal pointed to the company's strategic alliances – including a display facility with HKC, camera modules with Qtech, and precision components with Chongqing Yuhai – as key steps toward improving Dixon Technologies' margin profile and boosting customer stickiness. Additionally, the JV with Longcheer and Vivo is expected to provide incremental volume growth. Factoring in the strong outlook, Motilal Oswal raised its FY27 estimates by 10 per cent and maintained a 'Buy' rating with a revised target price of ₹22,100 (₹20,500 earlier) based on DCF valuation. Emkay Global echoed a similarly positive tone, noting that Dixon Technologies' revenue growth beat consensus estimates, led by strong performance in the mobile and EMS segments. The brokerage reaffirmed its confidence in Dixon's mobile volume guidance for FY26 and FY27 and highlighted the management's reiteration of 120-150bps margin expansion in the mobile vertical, despite PLI-related headwinds. Emkay sees the company benefiting from scale, strong client relationships, and backward integration. The management's commentary on diversifying into PCBA for industrial and automotive applications was also seen as a positive trigger for Dixon Technologies' next phase of growth. While Emkay slightly cut its DCF-based target price to ₹19,000 (to reflect minority interest from new and upcoming JVs), it maintained a 'Buy' rating, citing sustained competitive advantages and margin expansion drivers. That said, while the impending expiry of mobile PLI benefits poses a risk to margins, brokerages remain optimistic about Dixon Technologies' growth trajectory. Strategic JVs, robust mobile volumes, and a clear focus on backward integration are seen as key enablers of long-term value creation.
India.com
7 days ago
- Business
- India.com
Dixon Technologies' Profit Declines 39% Sequentially To Rs 280 Crore In Q1
Mumbai: Dixon Technologies' net consolidated profit for the first quarter of the current financial year (Q1 FY26) stood at Rs 280 crore, down 39 per cent sequentially, according to its exchange filing on Tuesday. The company had posted a net profit of Rs 465 crore in the preceding quarter (Q4 FY25). However, the net profit of the homegrown company doubled on year-on-year (YoY) from Rs 139.70 crore that it reported in the corresponding quarter a year ago (Q1 FY25). The revenue from operation also saw a decent uptick both sequentially and year-on-year, reaching at Rs 12,835.66 crore from Rs 10,292.54 crore in the preceding quarter and Rs 6,579.8 crore in the same quarter a year earlier. The Mobile and Other EMS Division's operating profit contribution increased to 82 per cent from 69 per cent in the previous year, and its share of total revenue increased to 91 per cent from 79 per cent in the first quarter of FY25. The company EBITDA rose to Rs 484 crore in the quarter, a surge of 89 per cent YoY. Meanwhile, the company saw a jump of Rs 2,497 crore in its total expenses to Rs 12,478.58 crore from Rs 9,981.92 crore in the January-March quarter (Q4 FY25). The shares of the company settled in the negative territory on Tuesday. The stock closed at Rs 16,110.0, down Rs 171 or 1.05 per cent. The company's shares have recovered well after continuing to be under pressure, rising 21.3 per cent since plunging to a two-month low of Rs 13,280 in late June. The stock experienced bullish run from February 2023 to December 2024, yielding an impressive 559 per cent return and reaching an all-time high of Rs 19,148 per share. Post the rally, the shares experienced some correction due to profit booking, but they have since bounced back. The stock is currently 16 per cent below its peak at Rs 16,112.
Business Standard
01-07-2025
- Business
- Business Standard
Morgan Stanley downgrades Dixon Tech to 'Underweight'; share price falls 3%
Dixon Technologies share price today: Dixon Technologies share price were under pressure on Tuesday, July 1, 2025, with the stock dropping as much as 3.15 per cent to hit an intraday low of ₹14,480 per share. Around 9:35 AM, Dixon Technologies shares were trading 2.87 per cent lower at ₹14,521.70. In comparison, BSE Sensex was trading 0.24 per cent higher at 83,808.06 levels. Why did Dixon Technologies share price drop today? Dixon Technologies' share price came under pressure today after global brokerage Morgan Stanley downgraded the stock to 'Underweight,' even as it raised the target price to ₹11,563 per share. The downgrade reflects the brokerage's concerns over intensifying competition in Dixon Technologies' core electronics manufacturing services (EMS) business, especially with government incentives for the sector coming to an end. According to reports, Morgan Stanley anticipates a marked slowdown in Dixon's earnings growth. It projects a 46 per cent decline in EMS-related earnings during FY25–27, followed by a further 18 per cent drop in FY27–30. While the company's foray into component manufacturing is seen as a positive strategic step, the brokerage flagged execution challenges, citing dependence on technology tie-ups, regulatory approvals, and cost management. Additionally, Dixon Technologies' entry into display fabrication is seen as high risk due to the segment's cyclical nature and its requirement for major capital and R&D investment, the brokerage said. Nomura on Dixon Technologies Nomura, in a note dated June 26, maintained a bullish view on Dixon Technologies, reiterating its 'Buy' rating. The brokerage also kept the target price unchanged at ₹21,409. The brokerage said the Indian mobile electronic manufacturing services space is likely to be divided among key players such as Dixon, DBG Technology, Bhagwati, BYD, UTL Neolync, and Tata Electronics—with Dixon Technologies expected to command the largest share. It highlighted that partnerships with ODMs like Longcheer and equity stakes from customers like Vivo and Transsion reduce the risk of client churn. Additionally, the company's diversification across clients helps mitigate the impact of weak demand from any single customer. Nomura also flagged a sharp uptick in Dixon Technologies' export sales during March–May 2025, which grew nearly fourfold. The surge, analysts said, is attributed to strong orders from Motorola and Transsion. With Motorola expected to shift a major portion of its US shipments from China to India due to tariff changes, Indian EMS players like Dixon Technologies stand to benefit. Supporting this, import data for Motorola mobile components into India showed a notable rise, with Dixon Technologies accounting for around 75 per cent of such imports in April–May 2025, slightly down from ~100 per cent earlier due to capacity constraints. Dixon Technologies' Motorola revenue has already surpassed previous monthly highs, and volumes are expected to grow further as new capacity goes live. Nomura projects Motorola volumes for Dixon Technologies to rise from around 11 million units in FY25 to 16 million in FY26 and 18 million in FY27. Overall, Nomura expects Dixon Technologies to manufacture approximately 45 million smartphones (excluding Vivo) in FY26 and 64 million in FY27. It believes mobile volume ramp-up, regulatory approvals, and new customer partnerships could serve as key catalysts for the stock going forward. ALSO READ | Dixon Technologies, a homegrown manufacturing company, offers design-led solutions across a broad spectrum of categories including consumer durables, home appliances, lighting, mobile phones, and security devices. The company also provides comprehensive repair and refurbishment services for various products such as set-top boxes, mobile phones, and LED TV panels, catering to customers worldwide.
