Equity Tiger India
Equity Tiger India

@Equity_Tiger_IN

11 Tweets Sep 07, 2022
Dixon Technology (India) Ltd Analysis!
A Detailed thread ๐Ÿงต ๐Ÿ‘‡๐Ÿป
#investing #stocktobuy
(1/10)
About:
Incorporated in 1993 by Mr. Sunil Vachani, DTIL is a diversified EMS company with operations in the electronic products
vertical such as consumer electronics, lighting, home appliance, closed-circuit television cameras (CCTVs), and mobile phones.
(2/10)
โ€ข DTIL has manufacturing facilities in Noida, Dehradun & Tirupati.
Dixon has received
approvals under the PLI scheme for five segments -
โ€ข Mobile phones
โ€ข Lightning
โ€ข Telecom & networking products
โ€ข Inverter controller boards for air conditioners
โ€ข IT hardware.
(3/10)
GOI Push for Indian EMS Industry:
For the Electronics industry, the government clearly aims to
position India as a global hub for ESDM by encouraging & driving
capabilities in the country for developing core components, &
enabling the industry to compete
globally.
(4/10)
Incentives:
โ€ข PLI for IT hardware, Large
scale electronics manufacturing, White Goods, Telecom &
Networking Products.
โ€ข Phased Manufacturing Program to promote domestic
manufacturing of Mobile Phones and various subassemblies involved in manufacturing of Mobile Phones
(5/10)
These schemes will boost investment in the entire value chain of the Indian electronics inds include designing & ensure local availability of components ICs, Chipsets, SoCs, Systems or IP Core & enable Indian Electronics industry to be more self-reliant & export oriented.
(6/10)
Business Segments:
โ€ข Consumer Electronics:
48% revenue share, Growth 34% YOY
The major customers in this segment are:
Xiaomi, Samsung, Hisense, VU, Nokia, Panasonic, TCL, Lloyd,
Flipkart, Philips, Toshiba
(7/10)
โ€ข Lightning Products:
12% revenue share, Growth 16% YOY
The major customers in this segment are:
Signify, Panasonic,
Wipro, Bajaj, Syska, Orient, Polycab, Luminous, Crompton
etc.
(8/10)
โ€ข Home Appliances:
7% Revenue share, 36% YOY growth.
The major customers in this segment are Samsung, Godrej,
Voltas- Beko, Panasonic, Lloyd, Flipkart, Haier, Reliance etc.
โ€ข Mobile Phones:
29% Revenue share, 274% growth YoY
Major clients: Samsung, Nokia,
(9/10)
New opportunities which the company is perusing:
โ€ข Refrigerators
โ€ข Laptops & Tablets/ IT Hardware Products
โ€ข Telecom & Networking Products
โ€ข Inverter controller boards for Air conditioners
โ€ข Wearables & Hearables :
(10/10)
Key Business Risks:
โ€ข Globalisation Risk: Cheap Imports from China
โ€ข Industry Risk: If the whole Industry reach at a
stagnant or declining position
โ€ข Client Concentration Risk
โ€ข Regulatory Risk
โ€ข Technology Risk

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