Synopsis:
Dixon Technologies has entered a joint venture with HKC Overseas, where HKC will acquire a 26% stake in Dixon Display Technologies Pvt Ltd (DDTPL), with Dixon retaining 74%. The collaboration aims to develop and distribute LCM and TFT-LCD modules in India.
The shares of the Large-Cap company specializing in electronics manufacturing services (EMS) and offering design-focused solutions for a variety of products, jumped by upto 5 percent upon entering into Share Subscription and Shareholders’ Agreement (SSHA) with HKC Overseas Ltd and its wholly owned subsidiary, Dixon Display Technologies Private Limited (DDTPL)
With a market capitalization of 1,01,256.00 Crores on Monday, the shares of Dixon Technologies (India) Ltd jumped upto 4.5 percent, making a high of Rs. 16,920.65 compared to its previous close of Rs. 16190.55.
Dixon Technologies (India) Limited, engaged in electronics manufacturing services (EMS) and offering design-focused solutions for a variety of products, has provided an update regarding its proposed joint venture with HKC Corporation Limited.
The company has now formally executed a Share Subscription and Shareholders’ Agreement (SSHA) with HKC Overseas Limited (an affiliate of HKC Corporation) and its wholly owned subsidiary, Dixon Display Technologies Private Limited (DDTPL). Under this agreement, Dixon will hold 74% and HKC will hold 26% of the paid-up share capital of DDTPL, based on a fully diluted basis.
The purpose of this joint venture is to develop, manufacture, and distribute liquid crystal modules and thin-film transistor LCD modules in India, as well as assemble and sell end-products like smartphones, TVs, and auto displays under the HKC brand.
The total investment involved is USD 31.30 million from Dixon and USD 10.998 million from HKC, and the shareholding will be finalized based on a valuation in accordance with Indian foreign investment rules. Upon completion, DDTPL will no longer be a wholly owned subsidiary of Dixon. This joint venture aligns with Dixon’s strategy to expand its footprint in the display module segment.
Financials & Others
The company’s revenue rose by 94.8 percent from Rs. 6,587.98 crore to Rs. 12,837 crore in Q1FY25-26. Meanwhile, the Net profit rose from Rs. 133.68 crore to Rs. 224.97 crore during the same period.
The company maintains a strong financial position with a low debt-to-equity ratio of 0.22, indicating minimal reliance on external debt. Its current assets exceed current liabilities, reflecting healthy short-term liquidity and sound working capital management.
Over the past three years, the company has delivered consistent performance with an average Return on Equity (ROE) of 15.84% and Return on Capital Employed (ROCE) of 17.35%. It has also shown solid growth, with average revenue increasing by 18.26% and net profit rising by 25.36% during the same period.
In Q1 FY 25-26, the Mobile & Other EMS Division saw strong growth, with revenue rising from Rs. 9,102 Cr in Q4 FY 24-25 to Rs. 11,663 Cr. The Home Appliances segment also showed a slight increase from Rs. 302 Cr to Rs. 313 Cr. However, Consumer Electronics & Appliances experienced a marginal decline from Rs. 689 Cr to Rs. 672 Cr, while Lighting Products also declined from Rs. 200 Cr to Rs. 188 Cr.
Dixon Technologies (India) Ltd is a leading Indian electronics manufacturing services (EMS) provider, headquartered in Noida, Uttar Pradesh. Founded in 1993, Dixon initially started with the manufacturing of color televisions and has since expanded into several sub-segments of the electronics market, including consumer electronics like LED TVs, home appliances such as washing machines and refrigerators, lighting products including LED bulbs and tubelights, mobile phones, CCTV equipment, wearables, and audibles.
The company operates 24 manufacturing units across India and serves as an original equipment manufacturer (OEM) and original design manufacturer (ODM) for several global and domestic brands, including Samsung, Xiaomi, Panasonic, Philips, and more. Dixon delivers end-to-end design and manufacturing solutions and is recognized for its innovation, quality, and cost-effectiveness.
Written by Sridhar J
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