Dixon Technologies (India) Pvt Ltd.

Established in 1993 (initially as Weston Utilities Ltd), Dixon Technologies (India) Ltd has evolved into the nation’s premier Electronics Manufacturing Services (EMS) player. Shreeji shipping global Ipo
Headquartered in Noida, Uttar Pradesh, the company is listed on the BSE and NSE under the ticker DIXON.

Dixon’s core business includes:

  • LED TVs, Washing Machines, Mobile Phones, Set-Top Boxes, Lighting, Consumer Electronics, and Home Appliances.
  • The company provides end-to-end design-to-assembly solutions for domestic and international brands, establishing it as a leading player in India’s “Make in India” initiative. Game Changers Texfab Limited IPO 2025 – Everything You Need to Know

Pros

  • Company is expected to report good quarter
  • Company has also provided decent profit expansion of 45.0% CAGR during last 5 years
  • Good return on equity (ROE) history for Company: 3 Years ROE 28.1%
  • Company’s median sales growth is 45.1% of the last 10 years

Cons

  • Stock is trading at 23.2 times its book value
  • Earnings include an other income of Rs.781 Cr.
  • Promoter holding has decreased over last 3 years: -5.35%

Quarterly Results

2022202320242025
Sales386749431153414855
Expenses 372247441110814924
Operating Profit145199426561
OPM %4%4%4%4%
Other Income13206497
Exceptional items002100
Other income normal

13-3497
Interest16173838
Depreciation29366696
Profit before tax100149529924
Tax %23%24%22%19%

Profit & Loss

2022202320242025
Sales10697121921769138860
Expenses 10313116731698637345
Operating Profit3845197051515
OPM %4%4%4%4%
Other Income4432497
Interest496481162
Depreciation

84115162281
Profit before tax2553454941570
Tax %25%26%24%21%
Net Profit1902553751233
Dividend Payout %6%7%8%4%

Key Strengths

  • One of India’s biggest EMS players, with advantages of global supply-chain diversification (China+1 strategy) and PLI (Production Linked Incentive) plans.
  • Diversified client base in consumer electronics, mobiles, appliances, and lighting segments.
  • Strong revenue and profitability growth over the last few quarters and years.
  • Geographical spread of manufacturing, providing it a cost and logistics advantage over peers.
  • Strong client base of prominent Indian and international brands.

Risks & Considerations

  • Slender operating margins common to EMS companies; cost and supply-chain effectiveness are essential.
  • Rich valuations may put future share performance under pressure if growth slows.
  • Substitution vulnerability from dependence on global brands leaving Dixon open to changes in demand and foreign exchange fluctuation.
  • Execution risks associated with aggressive expansion and new product lines (mobile components, semiconductors, etc.).

Leave a Comment