Shares of Dixon Technologies climbed around 3% in morning trade after the company announced two major strategic developments aimed at deepening its presence in the electronics manufacturing space. As of 9:15 AM, the shares were trading 3.49% higher at Rs 16,376.00.
In a big strategic move, Dixon has signed a binding term sheet to acquire a 51% stake in Kunshan Q Tech Microelectronics (India) Pvt Ltd (Q Tech India). The acquisition is aimed at strengthening Dixon’s hold in the high-demand area of camera and fingerprint modules — key components used in smartphones, IoT devices, and even automobiles.
The agreement was inked on July 15, 2025, with Q Tech India’s shareholders — Q Technology (Singapore) and Kunshan Q Technology International — collectively known as the Q Tech Group. The deal involves both primary and secondary investments and will provide Dixon with access to advanced technologies, precision manufacturing capabilities, and a highly skilled workforce.
This is a clear step forward in Dixon’s goal of becoming a critical player in India’s expanding mobile and electronics manufacturing sector. However, it’s worth noting that the deal is still subject to final approvals, regulatory clearances, and the signing of definitive agreements.
Dixon Technologies has also signed a binding term sheet with China-based Chongqing Yuhai Precision Manufacturing Co. to set up a joint venture in India.
Under this proposed JV, Dixon will hold a majority 74% stake, while Yuhai will own 21% (the remaining 5% is unconfirmed at this stage). The plan? To manufacture precision components for everything from laptops and smartphones to IoT devices, cars, and more.
This joint venture could play a key role in strengthening India’s domestic supply chain for high-end electronics and tech parts—areas that are becoming more critical as local and global demand continues to rise.
Brokerages Report
CLSA
Global brokerage CLSA has reiterated its ‘High Conviction Outperform’ rating on Dixon Technologies and maintained a target price of ₹19,000.
In its report, CLSA highlighted that Dixon’s aggressive push into backward integration — especially with camera modules, smartphone enclosures, and its earlier deal with HKC for display modules — could significantly raise value addition per smartphone from 15–17% to 45–55%. This level of integration could fundamentally change Dixon’s operating model and improve long-term margins.
“Such backward integration and component manufacturing are not just margin accretive but also open up new high-revenue opportunities through external sales,” CLSA noted. The brokerage expects margins to improve by 150–200 basis points over time as these verticals scale up.
CLSA also pointed out that Dixon’s position as a PLI beneficiary and early mover in India’s China+1 strategy puts it in a strong spot to capture global demand.
Nomura
Nomura is also bullish on Dixon, reaffirming its ‘Buy’ rating and setting an even higher target price of ₹21,409.
According to Nomura, the Q Tech India acquisition and Chongqing Yuhai joint venture could drive EPS growth of up to 5% in the medium term. The brokerage praised Dixon’s smart decision to acquire a controlling stake in an already operational Indian entity, which helps bypass long gestation periods associated with setting up a greenfield project.
Nomura sees these efforts as a natural extension of Dixon’s evolving portfolio — from assembling LED TVs and washing machines to now venturing into critical smartphone parts. With India doubling down on electronics manufacturing, Dixon’s strategy not only strengthens client relationships but could also help the company become a third-party component supplier, opening up fresh revenue streams.
Nomura emphasized that few Indian contract manufacturers are actively pushing into component ecosystems, and Dixon’s bold bets make it one of the top names to watch in India’s electronics value chain.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
