Shares of Dixon Technologies (India) hit a three-month high of ₹16,795.80, surging 6 per cent on the BSE in Tuesday’s intra-day trade amid heavy volumes. The stock of the consumer electronics company is trading at its highest level since January 21, 2025. It has recovered 36 per cent from its low of Rs 12,326.60 touched on April 7, 2025. The stock had hit a 52-week high of Rs 19,149.80 on December 17, 2024.
At 11:12 am; Dixon was trading 5 per cent higher at Rs 16,586.65, as compared to 0.44 per cent rise in the BSE Sensex. The average trading volumes on the counter jumped 1.5 times, with a combined 680,000 equity shares changing hands on the NSE and BSE.
India’s smartphone market performance in Q4FY25
India’s smartphone market contracted 8 per cent year-on-year (YoY) to 32.4 million units in January to March 2025 quarter (Q4FY25), as per media reports. Xiaomi and Samsung saw steep shipment declines of 38 per cent and 23 per cent respectively. Samsung, with a 23 per cent decline, shipped 5.1 million units and saw its market share shrink to 16 per cent from 19 per cent. On the other hand, Vivo extended its lead in the market, retaining the top spot with 7 million units shipped and a 22 per cent market share.
Component Production Linked Incentive (PLI) scheme
Last month, the Indian government notified the Electronics Component Manufacturing Scheme. Incremental details include the incentives offered to different categories (ranging from 10 per cent for multi-layer PCBs in the first year to 1 per cent on display module sub assembly in the sixth year and 25 per cent capital subsidy).
Brokerage views on Dixon – ICICI Securities and Kotak Institutional Equities
Dixon is the largest contract manufacturer of all major Android smartphones. Here, the persistent trend of India’s domestic demand needs to be watched out, and Q4 could be a one-off quarter considering the global tariff uncertainty. Further, Dixon is in process of increasing value addition from 17-18 per cent currently to 35-37 per cent of bill of material which shall support its revenue and profit trajectory, ICICI Securities said in a note.
Kotak Institutional Equities expects Dixon to participate in the display modules, camera modules and electro-mechanical component segments. For Dixon, in the display module and camera module categories, the total capex required over six years is only Rs 250 crore each. The implied asset turn in display modules in year 6 is 5X and for camera modules, it is 3.6X. Hence, both the targets for revenue and capex seem quite achievable in the first few years of the scheme, given the large captive volumes for mobiles.
“One of the biggest investor concerns has been the impact of Mobile PLI withdrawal. Based on our analysis, even if we include only the display module and the camera module businesses in our estimates, Dixon will be able to more than offset the impact of Mobile PLI withdrawal and see a 60 bps Ebitda margin expansion,” the brokerage firm said in its electronic manufacturing services (EMS) sector report.
FPIs cut stake, MFs increase holding in March 2025 quarter
According to the March 2025 quarter shareholding pattern disclosed by Dixon, foreign portfolio investors (FPIs) reduced their holdings in the company to 21.81 per cent from 23.22 per cent at the end of December 2024 quarter. However, domestic mutual funds (17.20 per cent) and insurance companies (5.16 per cent) have raised their holdings during the quarter. They held 16.93 per cent and 5.10 per cent stake, respectively, in the previous quarter, the shareholding pattern data shows.
About Dixon
Dixon Technologies (India) is one of the largest home grown design-focused solutions Company engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India. Their diversified product portfolio includes consumer electronics like LED TVs, home appliances like washing machines, lighting products like LED bulbs, tubelights, and downlighters, mobile phones, and CCTV & DVRs, apart from wearables and refrigerators.
Dixon also provides solutions in reverse logistics, i.e. repair and refurbishment services of LED TV panels. Dixon, a prominent player in the electronics manufacturing and design industry, has established unparalleled market dominance over the years. Operating on a B2B business model, it offers a diverse range of products.
Top-notch SEBI registered research analyst
Best SEBI registered Intraday tips provider
Telegram | Facebook | Instagram
Call: +91 9624421555 / +91 9624461555