Dixon Technologies (India) Ltd. share price target

We initiate with a BUY for a price target of Rs. 2,623 (25x FY20 target

Issue Size: 33,93,426 Equity Shares (including *Fresh issue of 3,39,751 Equity Shares + Offer for sale 30,53,675 equity shares) Issue Open: Sept 06 - Sept 08 2017, Price Band: Rs. 1760 - 1766.

ICICI Securities Ltd | Retail Equity Research Incorporated in 1993, Dixon Technologies (India) Ltd (DTL) is engaged in the manufacture of consumer durables, lightings and mobile phones for major brands like Panasonic, Phillips and Gionee. DTL has a fully integrated end-to-end product and solution suite for original equipment manufacturers (OEMs) ranging from global sourcing, manufacturing, quality testing and packaging to logistics. The company is also a leading original design manufacturer (ODM) of lighting products, LED TVs and...

DTIL would continue to report higher revenue and improvement in margins owing to its presence in high growth segments, experienced management and growing share of ODM segment. Despite the company operating on thin margins, it has registered return on capital of a whopping 33.3% in FY2017. Further, it has been generating positive cash flow..

Dixon Technologies (India) Ltd. (Dixon) is the largest home-grown design-focused and solutions company engaged in manufacturing products in the consumer durables, lighting and mobile phones. Of the net proceeds from fresh issue, around 45% will be utilized for the repayment/pre-payment of certain borrowings availed by the company, around 18% will be used to finance backward integration capabilities in the lighting products vertical and around 15% will be deployed for setting up a new manufacturing unit for LED TVs. While...

Incorporated on January 15, 1993, Dixon Technologies (India) Limited (DTIL) is the largest home grown Design-focused and Solutions company engaged in manufacturing products in the Consumer Durables, Lighting and Mobile Phones markets in India. The diversified product portfolio includes Consumer Electronics like LED TVs; Home Appliances like Washing Machines; Lighting products like LED bulbs and Tubelights, Downlighters and CFL Bulbs; and Mobile phones. DTIL also provide solutions in Reverse Logistics i.e. repair and refurbishment services of set top boxes, mobile phones and LED TV panels. DTIL is a fully integrated end-to-end product and solution suite to Original Equipment Manufacturers (OEMs) ranging from Global Sourcing, Manufacturing, Quality Testing and Packaging to Logistics. They are also a leading Original Design Manufacturer (ODM) of lighting products, LED TVs and semi-automatic washing machines in India. The key customers include Panasonic India Pvt. Ltd., Philips Lighting India Ltd, Haier Appliance (I) Pvt. Ltd.,...

Incorporated in 1993, Dixon Technologies is engaged in manufacturing products in the consumer durables, lighting and mobile phones markets. The product portfolio of the company includes (i) Consumer electronics like LED TVs (ii) Home appliances like washing machines (iii) Lighting products like LED bulb, tube lights, CFL bulbs etc. and (iv) Mobile phones. Dixon manufacture products for popular retail brands including Panasonic, Philips, Haier, Gionee, Surya Roshni, Reliance Retail, Intex Technologies, Mitashi and Dish. The company is also a leading Original Design Manufacturer (ODM) in India. The Company develops and designs products in-house at its R&D; facility. The ODM business...