EMS stock engaged in providing manufacturing and design-focused solutions for consumer durables, lighting, mobile phones, security devices, and many others jump upto 5 percent in the day’s trade upon signing an MoU with Cellecor Gadgets to strengthen its customer base in the Washing Machine segment.
Price Action
With a market capitalization of Rs. 88,377 Crores, the shares of Dixon Technologies (India) Limited were trading at Rs. 14,780 per equity share, up 3.8 percent from its previous day’s close price of Rs. 14,242.25
What Happened
Dixon Technologies (India) Limited has entered into a Memorandum of Understanding (MoU) with Cellecor Gadgets Limited for the manufacturing and supplying of Washing Machines and its related components for Cellecor Gadgets Limited.
Management Comments
Commenting on this occasion, Mr. Atul B. Lall, Vice Chairman & Managing Director of Dixon Technologies, stated “We are delighted to announce that Dixon Technologies has entered into an MOU with Cellecor for manufacturing of washing machines and its related components.
Through this partnership, Dixon Technologies will increase its customer base in the Washing Machine segment. Further, through this partnership, both Companies aim to target improved efficiencies and increased competitiveness.”
Recent Updates
Dixon Technologies (India) Limited has recently incorporated two wholly-owned subsidiary companies Dixon Electroconnect Private Limited and Dixon IT Devices Private Limited, to manufacture and deal in all kinds of Automatic components for electronic vehicles (EVs), Information Technology Products including Information Technology (IT) hardware components and related equipment and components.
About the Company
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.
Dixon Technologies (India) Limited has various partnerships and subsidiaries with various investments underway to start full-fledged operations for semiconductors. It has a strong customer base with major players like Motorola, Xiaomi, Panasonic, Realme, Samsung, Acer, Lenovo, and many more.
Financials & Ratios
Its Revenue from operations grew by 133 percent YoY from Rs. 4,943 Crores in Q2FY24 to Rs. 11,534 Crores in Q2FY25, accompanied by profits of Rs. 113 Crores to Rs. 412 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 24.7 percent and a return on capital employed (ROCE) of 29.2 percent. It has reported a debt-to-equity ratio of 0.36.
Written by: Bharath K.S
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