&w=3840&q=100)
Dixon rises 4% on camera module foray; brokerages decode stock strategy
At 9:20 AM, Dixon Technologies share price was trading 3.08 per cent higher at ₹16,305.05 per share. By comparison, BSE Sensex was trading 0.06 per cent lower at 82,522.16 levels.
The shares were buzzing after Dixon Technologies, on July 15, 2025, announced that it has signed a binding term sheet to acquire a 51 per cent stake in Q Tech India. The move marks Dixon's entry into the camera and fingerprint module segment, with applications across mobile handsets, IoT devices, and the automotive sector.
The acquisition, involving both primary and secondary investments, is subject to definitive agreements and regulatory approvals. According to the company, the deal is a step forward in boosting its backward integration strategy and strengthening India's electronics components ecosystem. CATCH STOCK MARKET LATEST UPDATES LIVE
In a parallel development, Dixon also announced a 74 per cent joint venture with Chongqing Yuhai Precision Manufacturing. The JV will focus on manufacturing precision mechanical and metal components for laptops, mobile phones, IoT products, and automotive applications — marking Dixon's foray into the precision components segment.
Brokerages decode why this move is a strategic win for Dixon Technologies:
Nomura
Nomura believes Dixon Technologies' latest move to acquire a 51 per cent stake in Q-Tech's India unit is strategically sound and earnings accretive. The brokerage highlighted that Q-Tech is a key global player in the camera module space, with a focus on >32MP cameras, OIS/periscope modules, and growing presence in segments like drones, automotive, VR and robotics. It counts major handset brands like Vivo, Oppo and Xiaomi among its key customers.
Q-Tech India has already scaled up well, clocking about ₹2,400 crore in FY24 revenue with an Ebitda margin of 5.8 percent. Based on an average realisation of about ₹400 per camera module, this suggests volumes of approximately 50 million units-implying a nearly 10 per cent market share. Nomura expects Dixon's backing could help Q-Tech India scale to 50–60 million phones over the next few years.
With operating leverage and support from the components PLI scheme, margins are also expected to improve. Importantly, acquiring an existing Indian entity will fast-track integration and avoid regulatory delays.
Nomura estimates that this initiative alone could boost Dixon's earnings per share (EPS) by over 5 per cent by FY28F, depending on the pace of scale-up. Additionally, the precision components JV targets another 8-10 per cent of the smartphone bill of materials (BoM).
Together with its display module JV with HKC, Dixon could potentially address about 30 per cent of the smartphone/laptop BoM-up sharply from 8-10 per cent currently. This, Nomura analysts said, will considerably boost Dixon's customer stickiness and deepen its competitive moat. The brokerage maintains its 'Buy' rating on the stock with an unchanged target price of ₹21,409.
JM Financial
JM Financial, meanwhile, believes these backward integration initiatives are well aligned with Dixon's display sub-assembly tie-up with HKC and will help the company boost capabilities at a time when the mobile PLI scheme is winding down and competition is intensifying. It noted that such partnerships will strengthen customer relationships while also being margin accretive.
With India being a 150 million-unit smartphone market and Dixon Technologies targeting 60–65 million units by FY27, JM Financial sees major internal opportunities for new product deployment.
'We factor this in through a 1-3 per cent increase in our FY25-27E EPS estimates. Maintain 'Hold' with a revised target price of ₹16,000, set at 60x Mar'27E EPS,' JM Financial analysts said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
10 minutes ago
- Economic Times
Q1 earnings, FII action among 8 factors that'll steer D-Street this week
Indian benchmark indices ended the week in the red, with the Nifty closing 0.7% lower. A host of key domestic and global events lined up for the week ahead are likely to influence market sentiment when trading resumes on Monday. ADVERTISEMENT On Friday, the Nifty declined by 143.05 points, or 0.6%, to end the day at 24,968.40. Commenting on the day's action, Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty remained under selling pressure on Friday, slipping towards 24,900, where it found initial support. The index stayed above the 50-day exponential moving average (50 EMA) and appears poised for a short-term pullback after the recent sharp correction, he noted. However, De maintained that it remains a 'sell on rise' market as long as the Nifty trades below 25,260. On the downside, selling pressure may intensify if the index breaches the 24,900 mark, he added. Key factors likely to impact market movement this week:It will be an earnings-heavy week, with 286 companies scheduled to announce their June quarter results over the next six days. Among the Nifty constituents, results are expected from Eicher Motors, UltraTech Cement, Bajaj Finance, Bajaj Finserv, Dr. Reddy's Laboratories, Infosys, Tata Consumer Products, Nestlé India, SBI Life Insurance, Cipla, and Kotak Mahindra widely tracked companies set to report include One 97 Communications (Paytm), Indian Railway Finance Corporation (IRFC), United Breweries, Zee Entertainment, and Bajaj Housing Finance. ADVERTISEMENT The Street will also react to the earnings of Reliance Industries and JSW Steel, which were announced on Friday after market hours. Additionally, results declared on Saturday by HDFC Bank, ICICI Bank, Yes Bank, and Reliance Power will keep these stocks in focus when markets reopen.A flurry of corporate actions is lined up this week, with record dates for dividends, rights issues, buybacks, and bonus shares scheduled for over 100 companies during the five-day trading window. ADVERTISEMENT Companies announcing record dates for dividend payouts include:Life Insurance Corporation of India (LIC), Hero MotoCorp, Divi's Laboratories, Bharti Hexacom, Shree Cement, Aditya Birla Sun Life AMC, Radico Khaitan, Info Edge (India), Union Bank of India, and Zydus Lifesciences. ADVERTISEMENT Meanwhile, Mahindra Logistics has set July 23 as the record date for its rights issue, and Focus Business Solution will determine eligibility for its bonus issue during the week. Wall Street ended mixed on Friday, with the S&P 500 and Nasdaq struggling to notch meaningful gains as investors looked ahead to more corporate earnings and remarks from the Federal Reserve Chair next Dow Jones Industrial Average slipped 142.30 points, or 0.32%, to close at 44,342.20. The S&P 500 ended flat at 6,296.79, while the Nasdaq Composite inched up 10.01 points, or 0.05%, to settle at 20, the mainboard segment, four initial public offerings (IPOs) will open for subscription this week. Among them, IndiQube Spaces' Rs 700 crore book-building issue will open on Wednesday, July 23, with a price band of Rs 225 to Rs 237 per share. GNG Electronic's IPO will also launch on the same day. ADVERTISEMENT Brigade Hotel Ventures' IPO will open on July 24, while Shanti Gold International will open on Friday, July 25, and close on Tuesday, July the SME segment, Monarch Surveyors & Engineering Consultants will open their IPO on July 22, TSC India on July 23, and Patel Chem Specialities on July three listings are likely this week: Anthem Biosciences, Monika Alcobev, and Spunweb action will hinge on the behaviour of foreign institutional investors (FIIs) in the coming week. On Friday, FIIs were net buyers, purchasing equities worth Rs 374.74 crore, while domestic institutional investors (DIIs) also remained net buyers, investing Rs 2,103.51 Nifty's technical setup, Hrishikesh Yedve, AVP – Technical and Derivative Research at Asit C. Mehta Investment Intermediates, noted that the index has broken below its 34-Day Exponential Moving Average (34-DEMA) on the daily chart and formed a red candle, indicating Nifty managed to hold above the 50-DEMA, currently placed near 24,930. A decisive break below this level could drag the index lower towards the 24,750–24,500 zone. On the other hand, if the index sustains above 24,930, a pullback rally towards 25,200–25,250 cannot be ruled out, Yedve Indian rupee weakened slightly on Friday, marking its second consecutive weekly loss, as the U.S. dollar rebounded from a more than two-year low and sustained equity outflows pressured domestic markets. The rupee closed at 86.1475, compared to its previous close of 86.0750, down 0.4% on the the near term, the rupee is 'likely to hover closer to 86.50 than 85.50,' according to a trader at a large private bank. The trader attributed the pressure to corporate dollar demand and outflows from Indian investors have net sold around $300 million in Indian equities so far in July, after infusing $1.7 billion in the dollar index was poised for its second straight weekly gain, supported by robust U.S. economic data that tempered expectations of imminent rate cuts by the Federal oil prices remain a key variable for stock markets, given their ability to influence a country's inflation trajectory. Oil prices edged lower on Friday, despite gains in the previous session, as concerns over drone attacks on northern Iraqi oil fields—which could disrupt supply—weighed on sentiment.U.S. West Texas Intermediate (WTI) crude settled at $67.30, down $0.24 or 0.36%, while Brent crude futures were trading near $69.28, up $0.29 or 0.42%. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
India.com
10 minutes ago
- India.com
Mukesh Ambani's another masterstroke: After BlackRock this company of Reliance partners with..., plans to dominate...
Mukesh Ambani's another masterstroke: After BlackRock this company of Reliance partners with…, plans to dominate… Mumbai: After partnering with US-based investment powerhouse BlackRock and making its official entry into the mutual fund sector of India, businessman Mukesh Ambani's Jio Financial Services Limited has joined hands with Allianz Group to dominate the reinsurance sector in India. Both companies entered the reinsurance sector through their wholly owned subsidiary, Allianz Europe BV, with a 50:50 joint venture. In its exchange filing, JFSL informed about its latest partnership, stating that it will bring the company's deep local expertise and strong digital presence together with Allianz's global reinsurance capabilities. It is worth noting that Allianz SE ended its two-decades partnership with Bajaj Finserv four months ago. Now, the insurance major has joined hands with Jio Financial Services. Will This Partnership Create A Stir In The Reinsurance Business? On July 18, the JFSL informed that the board of directors have showed a green light to the formation of a joint venture with Allianz Europe BV (Allianz) in the ratio of 50:50 for reinsurance business. The new company will start its operation after getting mandatory regulatory and statutory approvals. Both Companies Are Also Partners In Insurance Business Notably, Reliance's Jio Financial Services also clarified that the transaction is not linked to any related party. Both companies also signed a non-binding term-sheet to establish a joint venture in the ratio of 50:50 for general insurance and life insurance business. The company will help insurers manage risks more effectively by providing stronger underwriting capabilities and competitiveness. Jio Financial Services announced a joint venture focused on delivering user-friendly, secure, and digitally accessible financial services to Indian consumers. The venture will concentrate on four key areas: lending, investment, transactions, and financial protection.
Mint
40 minutes ago
- Mint
Stock market this week: US-India trade deal, Q1 earnings, macro-economic data top triggers that may dictate Dalal Street
Indian stock market indices—the Sensex and Nifty 50— ended on a weaker note on Friday, July 18, marking their third straight week of losses. The Nifty 50 slipped below the crucial 25,000 mark. Over the last three weeks, the Sensex has shed about 2,300 points, or nearly 3 per cent, and the Nifty 50 has seen a similar 3 per cent decline. On July 18, the Nifty 50 declined by 143 points, or 0.57 per cent, settling at 24,968.40, while the Sensex dropped 502 points, or 0.61%, finishing at 81,757.73. 'Markets edged lower on Friday, losing over half a percent, primarily due to weak earnings. A sharp decline in Axis Bank following its results made participants cautious ahead of upcoming earnings from other banking heavyweights, namely HDFC Bank and ICICI Bank, which are scheduled over the weekend. Additionally, the results of another index heavyweight, Reliance Industries, expected after market hours on Friday, further added to the cautious sentiment. As a result, the Nifty index nearly tested the support zone of 24,900 before settling at 24,968.40 level,' said Ajit Mishra – SVP, Research, Religare Broking Ltd. Markets continued to decline for the third straight week, as investor sentiment remained cautious amid a weak start to the earnings season and persistent uncertainty over the US-India trade agreement. Like the previous week, the benchmark indices initially showed some strength in the first three sessions, but the momentum shifted downward in the latter part of the week. By the end of the week, both the Nifty and Sensex closed near their weekly lows at 24,968.40 and 81,757.73, respectively. On the Nifty outlook next week, brokerage firm Bajaj Broking said, ' Nifty on the weekly chart formed a bear candle with a lower high and lower low signaling continuation of the corrective decline for the third consecutive week. Market activity was largely stock-specific, awaiting concrete cues on both macro and micro fronts. The market is expected to be volatile in Monday's session, driven by the quarterly results of key index heavyweights—Reliance Industries, ICICI Bank, and HDFC Bank. These earnings will serve as a crucial trigger to watch. Key level to track remains at 24,900. A sustained breach below the same could prolong the corrective phase towards 24,600–24,400. Conversely, holding above may trigger a technical rebound towards last week high (25,255). However, only a breakout past last week's high would confirm a pause in ongoing correction and open upside potential towards 25,500–25,600 in the near term.' Meanwhile, on the Bank Nifty outlook, it added, ' Bank Nifty formed a sizable bear candle signaling profit booking at higher levels for the second session in a row. The index on Friday's session breached the last 10 sessions consolidation range 56,500-57,600 signaling extended decline. A follow through weakness will open further downside towards 55,000 levels. Key short-term term support is placed at 56,000–55,500 region, representing a confluence of the 50-day EMA and the key retracement level.' India and the United States have completed the fifth round of discussions for the proposed Bilateral Trade Agreement (BTA) in Washington. The four-day talks, held from July 14 to 17, were headed by India's chief negotiator and special secretary in the commerce department, Rajesh Agrawal. This round of negotiations is especially significant as both countries are working to finalize an interim trade pact before August 1. This date marks the conclusion of the suspension period for the Trump-era tariffs, which had introduced additional duties of up to 26% on imports from several nations, including India. According to reports, Donald Trump has increased pressure in trade talks with the European Union by insisting that any agreement include a minimum tariff ranging between 15% and 20%. On the macroeconomic side, key data indicators like India's Infrastructure Output and HSBC Flash PMI figures for Manufacturing, Services, and Composite sectors will be closely monitored. The focus will stay on the ongoing earnings season as a number of major results are expected. In the coming sessions, several leading companies such as Infosys, Dr. Reddy's Laboratories, Bajaj Finance, Nestle India, and Cipla are set to release their quarterly earnings. The IPO buzz in the primary market is all set to continue as 10 new public issues, including five in mainboard segment, are scheduled to open for subscription next week. Apart from new issues, the market will also witness listing of Monika Alcobev IPO in the coming week. Foreign Portfolio Investors (FPIs) offloaded shares worth ₹ 3,694 crore in Indian equities, whereas Domestic Institutional Investors (DIIs) made net purchases amounting to ₹ 2,820 crore, as per provisional data from the NSE, on Friday, July 17. DIIs bought shares totaling ₹ 13,523 crore and sold shares worth ₹ 10,702 crore. Meanwhile, FPIs purchased stocks worth ₹ 11,633 crore but sold ₹ 15,327 crore during the day. Cumulatively for the year, FPIs have been net sellers of equities valued at ₹ 1.32 lakh crore, while DIIs have emerged as net buyers with a total of ₹ 3.67 lakh crore. Crude oil futures remained largely steady on Friday amid mixed signals from U.S. economic and tariff developments, along with concerns over supply due to the European Union's newest sanctions on Russia over its invasion of Ukraine. Brent crude slipped by 24 cents, or 0.3%, closing at $69.28 per barrel, while U.S. West Texas Intermediate (WTI) crude declined by 20 cents, or 0.3%, finishing at $67.34. Both benchmarks ended the week roughly 2% lower. Gold prices climbed on Friday, supported by a softer U.S. dollar and persistent geopolitical and economic uncertainties that increased the appeal of the safe-haven asset. Meanwhile, platinum prices dipped after touching their highest levels since 2014. Spot gold was up 0.4% at $3,351.18 per ounce, rebounding after a 1.1% decline in the previous session. According to Ajit Mishra – SVP, Research, Religare Broking Ltd, market indices to remain in a consolidation phase with a negative bias in the near term, driven by a weak start to the earnings season and prevailing global uncertainties. " Nifty ended the week below the key psychological mark of 25,000, indicating sustained caution. The index remains vulnerable to further downside if it breaks below the immediate support zone of 24,900. A breakdown could drag the index toward the 24,450–24,700 zone in the coming sessions. On the upside, the 20-day EMA—currently acting as a short-term hurdle—may restrict recovery around the 25,250 mark. A decisive move above this level is essential for any bullish reversal. Until then, the broader trend is expected to remain under pressure," Mishra said. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
