This company announced that it has formed a joint venture agreement with Inventec for the commencement of several new products in its line. In this article, we will understand the terms and conditions and the scope of this agreement.
Price Movement
With a market capitalization of Rs 98,553 crore, the shares of Dixon Technologies (India) Ltd are currently trading at Rs 16,361 per share, down by 14.6 percent from its 52-week high of Rs 19,150 per share. In the last year, the stock has given a superior return of 96.29 percent.
About the announcement
On Wednesday, Dixon Technologies announced that it has formed a Joint Venture Agreement with Inventec. The work includes the manufacturing of Notebook PC Products, Servers, Desktop PC Products, including Components in India. As per the Joint Venture Agreement, Dixon IT Devices Private Limited (JV Company) will be 60 percent owned by Dixon and 40 percent owned by Inventec.
About Inventec
Inventec is a worldwide PC, phone, laptop, and server manufacturer recognized for its powerful roots and worldwide success. Through innovation, quality, openness, and efficient operation, the organization drives diversification of products, strategic alliances, and supply-chain efficiency. During the past years, it has grown into automotive electronics, cloud computing, wireless communication, smart products, and Internet of Things technologies.
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Financial Highlights
It reported a consolidated revenue of Rs 10,454 crores in Q3 FY25, up by 116.94 percent from Rs 4,818 crores in Q3 FY24. Additionally, it reported a net profit of Rs 216 crores in Q3 FY25, up by 122.68 percent from Rs 97 crores in Q3 FY24.
It has an ROE and ROCE of 24.73 percent and 29.16 percent, respectively, and is trading at a significantly high P/E of 154.64x as compared to its industry average of 25.76x.
About the company
Dixon Technologies (India) Limited is the largest home-grown design-focused and solutions company engaged in manufacturing products in the consumer durables, lighting, and mobile phones markets in India.
Dixon’s range of products comprises of consumer electronics like LED TVs, home appliances such as refrigerators and washing machines, lighting solutions such as tube lights and LED bulbs, telecom and IT hardware, mobile phones, hearables and wearables, and the likes. It also provides reverse logistics solutions in the form of refurbishment and repair of LED TV panels.
Written by Satyajeet Mukherjee
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