Domestic benchmark equity indices, the Sensex, and the Nifty 50 ended Friday’s session in green along with making new all-time highs. The Sensex ended at 76,992.77 up by 181.87 points or 0.24 percent, while the Nifty 50 closed at 23,465.60 up by 66.70 points or 0.29 percent in Friday’s session.
Listed below is a Large-cap stock that has delivered multibagger returns of 2,800 percent to the shareholders of the company in 5 years
Dixon Technologies (India) Limited is an Electronic Manufacturing Services (EMS) company engaged in providing manufacturing and design-focused solutions for consumer durables, home appliances, lighting, mobile phones, security devices, set-top boxes, wearables, and medical equipment to customers across the globe, along with repairing and refurbishment services of LED TV panels. It has a market share of 50 percent in Security Systems.
With a market capitalization of Rs. 67,218 Crores, the shares of Dixon Technologies (India) Limited closed at Rs. 11,234 per equity share, up 3.48 percent from its previous day’s close price of Rs. 10,856.70. It has delivered multibagger returns of 157 percent in a year.
On August 9, 2019, the shares of Dixon Technologies (India) Limited closed at Rs. 388.16 exhibiting a gain of around 2800 percent compared to the current price. For example, if someone had invested Rs. 1 lakh into the company’s stock 5 years ago, it would have turned to Rs. 29 Lakhs.
Dixon Technologies (India) Limited has various partnerships and subsidiaries with various investments underway to start full-fledged operations for the semiconductors. It has a strong customer base with major players like Motorola, Xiaomi, Panasonic, Realme, Samsung, Acer, Lenovo, and many more.
As of FY24, Dixon Technologies (India) Limited generated 66 percent of its revenue from its Mobile & EMS Division, 23 percent from Consumer Electronics & Appliances, 7 percent from Home Appliances, 4 percent from Lighting Products, and the rest 4 percent from security systems.
Looking into the financials, Its revenue from operations grew by 51.95 percent YoY from Rs. 3,065 Crores in Q4FY23 to Rs. 4,657.97 Crores in Q4FY24 and it decreased by 3.32 percent QoQ from Rs. 4,818.25 Crores in Q3FY24 to Rs. 4,657.97 Crores in Q4FY24.
Its Net Profit Grew by 20.7 percent YoY from Rs. 80.61 Crores in Q4FY23 to Rs. 97.3 Crores in Q4FY24 and it grew 0.23 percent QoQ from Rs. 97.07 Crores in Q3FY24 to Rs 97.3 Crores in Q4FY24.
In addition, recently it has entered into a Joint Venture agreement with HKC Corporation Limited (“HKC”) to undertake the manufacturing of Liquid Crystal Modules (“LCM”), thin film transistor liquid crystal display modules, assembly of end products like, smartphones, TVs, monitors, and auto displays and selling HKC branded End products in India.
In terms of future plans, For the Mobile and EMS business, It has created a capacity of 45 million smartphones and 40 million feature phones. That’s approximately 50 percent of the opportunity pool in this business, It is making incremental investments in this business in order to meet the increased order book of customers
It has setup a state-of-the-art R&D center for display devices in Noida for superior product developments in televisions and in IFPDs and signages. It is also actively exploring manufacturing of industrial, institutional, and automotive displays.
It has signed an agreement with Nokia to manufacture 5G fixed wireless devices, and it sees an extremely good order book in this particular domain. In this particular category, it has also met the thresholds both for PLI investment and revenue.
Written by: Bharath K.S
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