On Friday, the shares of India’s second-largest mobile phone maker rose 9.5 percent to Rs 6,034.95 per share after the company’s subsidiary launched a new plant to make Xiaomi phones in India.
At 1:40 p.m., Dixon Technologies Ltd shares were quoted at Rs 5,996 per share, up Rs 489 or 8.81 percent from the previous close price. The company has a market capitalization of Rs 35,836 crore.
According to the company’s exchange filing, Dixon Technologies’ wholly-owned subsidiary Padget Electronics Inaugurated a new state-of-the-art smartphone manufacturing Plant in the Noida district, Uttar Pradesh.
The company commenced the production of smartphones for global technology giant – Xiaomi India in Q3, of 2023. To boost the local smartphone manufacturers.
Padget Electronics Private Limited is a Wholly Owned Subsidiary of Dixon Technologies (India) Limited engaged in the business of manufacturing mobile phones and IT hardware as its core business activity.
The state-of-the-art manufacturing facility at Noida is built across 2.7 lac square feet and at an annual capacity of 25 million units, the new manufacturing plant represents a significant stride in India’s efforts to bolster its footprint in local smartphone manufacturing.
Currently, Dixon Tech has 17 manufacturing facilities totaling 2.5 million square feet, with plans to expand to 23 facilities totaling 4.8 million square feet by FY 2024.
Dixon Technologies Ltd shares have returned 54 percent in the previous six months and 37 percent in the last year.
The business has a market share of 35 percent in the production of LED televisions, 30 percent in washing machines, 25 percent in security surveillance systems, and 50 percent in lighting solutions.
Dixon Technologies Ltd is the world’s fourth-largest LED lamp producer and India’s largest. LED Lamp manufacturer.
The company’s revenues have increased by 28 percent year on year from Rs 3,866 crore in Q2FY23 to Rs 4,943 crore in Q2FY24, while net profit rose by 43 percent in the same period, from Rs 77 crore to Rs 110 crore.
In the previous fiscal year, the company’s domestic revenue was 91 percent and its export revenue was 9 percent. The company has allocated Rs 450 million as a capex plan in this ongoing financial year.
The business recorded significant cash generation from operations of Rs 726 crores in FY 22-23, which was utilized to fund a capex of Rs 450 crores and reduce gross debt by Rs 275 crores, further improving the balance sheet.
Dixon Technologies Limited is the largest engaged in manufacturing products in the consumer durables, lighting, and mobile phones markets in India. Their diversified product portfolio includes consumer electronics, home appliances like washing machines, lighting products, tube lights, downlighters, mobile phones, and many more.
Written by Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
