In Monday’s early trade, the shares of India’s second-largest mobile phone manufacturer gained 2.7 percent to a 52-week high price of ₹7,045.25 per share after it inaugurated a new facility to manufacture washing machines.
At 11:25 a.m., Dixon Technologies Ltd. shares were quoted at ₹7,000 per share, up ₹134 or 1.95 percent, from the previous close price. The company has a market capitalization of ₹41,869 crore.
On February 23, 2024, Dixon Technologies inaugurated a new manufacturing unit at Dehradun, Uttarakhand, for the manufacturing of washing machines, boasting the company’s annual production capacity of 24 lakhs.
The company’s Dehradun manufacturing unit is expected to generate employment opportunities for more than 1,000 people. The inauguration ceremony of the new facility was graced by the presence of the Hon’ble Chief Minister, Shri Pushkar Singh Dhami.According to the exchange filing,.
Recently, Dixon’s wholly owned subsidiary- Padget Electronics Private Limited, received a manufacturing contract from Lenovo to carry out the manufacturing of IT hardware products, including, laptops and notebooks, under the Production Linked Incentive 2.0 Scheme.
Dixon Tech currently has 17 manufacturing facilities totaling 2.5 million square feet, with plans to develop 23 plants totaling 4.8 million square feet by FY 2024.
Dixon Technologies Ltd. shares have returned 41 percent in the last six months and 151 percent in the last year.
The company has a market share of 35 percent in the manufacture 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-biggest LED light manufacturer and the largest in India. Manufacturer of LED lamps.
Revenues climbed by 100 percent year on year, from ₹2,405 crore in Q2FY23 to ₹ 4,818 crore in Q2FY24, while net profit improved by 86 percent, from ₹52 crore to ₹97 crore.
Domestic revenue accounted for 91 percent of the company’s revenue in the previous fiscal year, while export sales accounted for 9 percent. In the current fiscal year, the company has set aside Rs 450 million for capital expenditure.
In FY 22-23, the company generated considerable cash from operations of ₹726 crores, which was used to support a capex of ₹ 450 crores and decrease gross debt by ₹ 275 crores, further strengthening the balance sheet.
Dixon Technologies Limited is the largest company engaged in manufacturing products in the consumer durables, lighting, and mobile phone 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
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