Tag: Dixon

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Adani Ports to Buy Back up to Rs 1,620Cr of 2024 Bond – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Adani Ports to buy back up to ₹1,620Cr of 2024 bond

Adani Ports & Special Economic Zone (SEZ) commenced a cash tender offer for up to $195 million (~₹1,620 crore) to partly prepay its near-term debt maturities. The company started a buyback programme of some debt securities in April to prepay part of its near-term loans due in 2024. The tender offer is to buy the outstanding 3.375% senior notes due in 2024 for up to $195 million in cash. 

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Bank of Maharashtra fails to attract buyers for loans to Asian Hotels

Bank of Maharashtra failed to receive any firm bids for its loans of Asian Hotels (North) at the auction held on Tuesday. Asian Hotels (North) operates the five-star property Hyatt Regency (Delhi). According to the auction notice from the bank, it had set a reserve price of ₹330 crore as against the outstanding dues of ₹ 324 crore.

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Dixon Tech signs manufacturing agreement with Xiaomi

Dixon Technologies Ltd’s subsidiary, Padget Electronics Pvt Ltd, has entered into an agreement with Xiaomi to manufacture smartphones and other related products. The manufacturing will take place at Padget’s manufacturing facility in Noida. The deal will help Xiaomi India leverage Dixon’s status of being cleared to receive sops under the government’s production-linked incentive (PLI) scheme for mobile manufacturing. 

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NMDC’s China exports hindered by logistics

According to a Reuters report, NMDC is unable to export low-grade iron ore to China due to logistics issues. The company did not immediately reply to a Reuters email seeking comments. There is a severe shortage of rakes to move the ore anywhere in the country which is affecting exports. China imports around 80% of India’s overall shipments.

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Apollo acquires under-development hospital asset from Future Oncology in Kolkata

Apollo Hospitals has acquired a partially built hospital in Sonarpur, Kolkata, from Future Oncology Hospital and Research Centre for ₹102 crore in an all-cash deal. The acquired hospital has a total capacity of 325 beds. The acquisition is being fully funded through internal accruals by Apollo Multi Speciality Hospitals, a wholly-owned subsidiary of Apollo Hospitals.

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ADIA looks to invent $600 million into RIL’s retail business

According to an Economic Times report, Abu Dhabi Investment Authority (ADIA) is looking to buy an additional stake in Reliance Retail. ADIA is seeking to invest $600 million into Reliance Retail at valuations that significantly exceed those during an earlier concluded fundraising round three years ago. 

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Tata Power Renewable Energy to set up 41 MW captive solar plant for TP Solar

Tata Power Renewable Energy Ltd (TPREL) will set up a 41 MW captive solar plant at Thoothukudi, Tamil Nadu. The plant is for TP Solar’s new greenfield 4.3 GW solar cell and module manufacturing facility located at Tirunelveli, Tamil Nadu. The solar project will be commissioned 12 months from the signing of the Project Development Agreement (PDA). TPREL is a subsidiary of Tata Power.

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Glenmark signs agreement to market Cosmo Pharma’s acne cream in Europe, South Africa

Glenmark Specialty SA (GSSA) has signed distribution and licence agreements with Cosmo Pharmaceuticals NV for Winlevi, which is used in treating acne. The company will market and distribute Winlevi in Europe and South Africa. Glenmark Speciality SA will receive exclusive rights from Cosmo’s subsidiary to commercialise Winlevi in 15 EU countries and South Africa. GSSA is a subsidiary of Glenmark Pharma.

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Aditya Birla Capital gets ₹750 crore investment in subsidiary

Aditya Birla Capital Ltd (ABCL) announced investment in its wholly-owned subsidiary. The company is making an investment of around ₹750 crore on a rights basis in the equity shares of Aditya Birla Finance Ltd (ABFL). ABCL is investing in ABFL to meet its growth and funding requirements and improve its leverage ratio.

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Market News Top 10 News

Bajaj Finance’s Net Profit Rises 85% YoY in Q3 – Top Indian Market News

Bajaj Finserv

Bajaj Finance Q3 Results: Net profit rises 85% YoY to Rs 2,125 crore

Bajaj Finance Ltd reported an 85% YoY increase in consolidated net profit to Rs 2,125 crore for the quarter ended December (Q3 FY22). Its net interest income (NII) rose 40% YoY to Rs 6,000 crore during the same period. The gross non-performing assets (GNPA) ratio stood at 1.73% in Q3 FY22, compared to 2.45% in Q2 FY22. Bajaj Finance’s assets under management (AUM) rose 26% YoY to Rs 1,81,250 crore in Q3 FY22.

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Reliance Retail acquires 54% stake in Addverb Technologies for $132 million

Reliance Retail Ventures Ltd has acquired a 54% stake in robotics startup Addverb Technologies for $132 million (~Rs 984.4 crore). The deal will provide Addverb Technologies an opportunity to deploy robots at scale in omnichannel distribution centres across different segments. The company is planning to deploy its robots across hospitals and airports.

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L&T Tech Q3 Results: Net profit rises 34% YoY to Rs 249 crore

L&T Technology Services Ltd (LTTS) reported a 34% YoY increase in consolidated net profit to Rs 248.8 crore for the quarter ended December (Q3 FY22). Net profit rose 8% when compared to the previous quarter. Its revenue from operations rose 21% YoY (or 5% QoQ) to Rs 1,687.5 crore during the same period. EBITDA stood at Rs 314 crore, up 48% YoY. LTTS has declared an interim dividend of Rs 10 per share.

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Tata Motors to hike prices of passenger vehicles from Jan 19

Tata Motors Ltd will increase the prices of its passenger vehicles by an average of 0.9%, with effect from January 19. The steep rise in overall input costs has compelled the automaker to pass on some proportion to customers through a minimal price hike. At the same time, Tata Motors has introduced a reduction of up to Rs 10,000 on specific variants in response to customer feedback.

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EaseMyTrip signs pact with Flybig to sell tickets exclusively on its platform

Easy Trip Planners Ltd has partnered with regional airline Flybig to sell its tickets exclusively on the EaseMyTrip platform. All bookings of Flybig by any other online travel portals will also go through and be processed by EaseMyTrip. With this partnership, Flybig aims to explore new avenues for growth and widen its network. Flybig plans to induct five aircraft by the end of March 2022.

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DCM Shriram Q3 Results: Net profit rises 38% YoY to Rs 350 crore

DCM Shriram Ltd reported a 38% YoY increase in consolidated net profit to Rs 349.57 crore for the quarter ended December (Q3 FY22). Net profit jumped 122% when compared to the previous quarter. Its revenue from operations rose 26.5% YoY to Rs 2,790 crore during the same period. EBITDA rose 46% YoY to Rs 588 crore in Q3. The chemical manufacturer has declared an interim dividend of Rs 5.2 per share. 

IndusInd Bank sells Rs 4,050 crore distressed loans to ARC in last 9 months

As per a report from the Economic Times, IndusInd Bank sold more than Rs 4,050 crore of distressed loans to asset reconstruction companies (ARC) in the last nine months to clean its books. The bank sold Rs 2,552 crore loans to Edelweiss ARC and Rs 1,500 crore to Omkara ARC in separate pools, comprising retail and corporate loans. The report further states that IndusInd Bank’s aim to maintain its net non-performing assets (NPAs) below 1% could have prompted it to sell the distressed loans.

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Tata Elxsi Q3 Results: Net profit rises 43% YoY to Rs 151 crore

Tata Elxsi Ltd reported a 43.5% YoY increase in net profit to Rs 151 crore for the quarter ended December (Q3 FY22). Net profit rose 20.4% when compared to the previous quarter. Its revenue from operations rose 33.2% YoY (or 6.7% QoQ) to Rs 635.4 crore during the same period. EBITDA grew 46.8% YoY to Rs 210.8 crore in Q3.

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Dixon Tech enters into JV with Imagine Marketing

Dixon Technologies Ltd has entered into a 50:50 joint venture (JV) with the makers of Boat brand of electronics, Imagine Marketing. The JV will undertake the design and manufacturing of wireless audio solutions in India. The partners will also co-invest in the evolving Indian mobile accessory market as part of the Make in India initiative. The joint venture will invest Rs 40 crore over the next four years.

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Nazara Tech acquires 55% stake in adtech firm Datawrkz

Nazara Technologies Ltd has acquired a 55% stake in programmatic advertising and monetisation company Datawrkz. The transaction will value the company at around Rs 225 crore. The acquisition will help enhance Nazara Tech’s in-house capabilities to optimise its customer acquisition spending. It will also help the company enhance yields on ad monetisation of its large consumer base.

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Jio adds 20.1 lakh mobile subscribers in November; Airtel adds 13 lakh users

Reliance Jio Infocomm gained 20.1 lakh mobile subscribers in November 2021. Jio’s total subscriber base rose to 42.86 crore during the same month. Bharti Airtel added 13.1 lakh users, taking its overall mobile user base to 35.52 crore at the end of November. Vodafone Idea (Vi) lost 18.9 lakh subscribers in November and its user base shrunk to 26.71 crore. The subscription data was released by the Telecom Regulatory Authority of India (TRAI).

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Trident Q3 Results: Net profit rises 88% YoY to Rs 211 crore

Trident Ltd reported an 88% YoY increase in net profit to Rs 211.09 crore for the quarter ended December (Q3 FY22). Net profit fell 10% when compared to the previous quarter. Its total income rose 51.6% YoY to Rs 1,983.65 crore during the same period. The textile firm’s EBITDA stood at Rs 406 crore in Q3, up 68% YoY.

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Market News Top 10 News

IndiGo Signs Codeshare Pact With Air France-KLM – Top Indian Market News

IndiGo signs codeshare agreement with Air France-KLM

InterGlobe Aviation Ltd (IndiGo) has signed an extensive codeshare agreement with Air France-KLM. With this partnership, Air France and KLM will offer their customers access to 25 new Indian destinations. Meanwhile, customers of IndiGo will get access to over 250 global destinations offered by Air France and KLM. The codeshare agreement is subject to government approval and is expected to start in February 2022.

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Macrotech Developers, Morgan Stanley to build warehouse project at Rs 600 crore investment

Macrotech Developers Ltd has partnered with Morgan Stanley Real Estate Investing (MSREI) to develop a premium warehousing project with an investment of Rs 600 crore. The logistics park will be spread over 72 acres at Palava Industria & Logistics Park (PILP) near Mumbai. As per the agreement, Macrotech Developers would act as the development manager for the project, responsible for leasing, project development, and asset management.

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SJVN, DVC to harness 2,000 MW floating solar energy projects

SJVN Ltd and Damodar Valley Corporation (DVC) have signed a Memorandum of Understanding (MoU) for harnessing 2,000 megawatts (MW) floating solar energy projects. Both entities will jointly identify suitable water bodies and available land under the SJVN and DVC command areas for setting up renewable power projects. This initiative is in line with the renewable energy target set by the Centre and would enable SJVN to expand its footprint across India.

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Havells starts operations at washing machine manufacturing unit in Rajasthan

Havells India Ltd has commenced operations at its washing machine manufacturing unit at Ghiloth, Rajasthan. Spread across 50 acres, the unit will significantly strengthen the washing machine production capacity of Lloyd (a Havells brand) with a targeted output of 3 lakh units annually. The Ghiloth facility also houses a manufacturing unit for Lloyd air conditioners with a capacity of 10 lakh units per year.

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Man Industries secures pipe manufacturing orders worth Rs 225 crore

Man Industries (India) Ltd has secured orders worth Rs 225 crore for manufacturing pipes. With this new order, the company’s order book has reached Rs 1,700 crore. The projects are to be executed in the next 6-7 months. Man Industries is a manufacturer and exporter of large diameter carbon steel line pipes for various high-pressure transmission applications such as gas, crude oil, petrochemical products, and potable water.

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REC signs pact with KfW Development Bank to finance power sector, renewable energy projects

REC Limited has signed an agreement with KfW Development Bank to avail official development assistance (ODA) term loan of $169.5 million to finance the power sector and renewable energy projects. The proceeds from the ODA loan will be deployed for part-financing of innovative solar PV technology-based power generation projects. REC Ltd (formerly Rural Electrification Corporation Ltd) is a public infrastructure finance company in India’s power sector.

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Hero MotoCorp to raise prices of vehicles by up to Rs 2,000

Hero MotoCorp Ltd will make an upward revision in the ex-showroom prices of its motorcycles and scooters, with effect from January 4, 2022. The prices will be raised by up to Rs 2,000. This move is to partially offset the impact of steadily increasing commodity prices. It would mark the third hike in Hero MotoCorp’s two-wheeler prices within a span of six months. 

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Dixon Tech to invest Rs 127 crore to set up tab, laptop production facility

Dixon Technologies Ltd has announced plans to invest Rs 127 crore to set up a facility at the Kopparty YSR Electronics Manufacturing Cluster (EMC) in Kadapa district, Andhra Pradesh. The firm will produce security surveillance systems, digital video recorders, laptops, and tablets at the new facility. The unit would get two lakh sq ft of space spread across four sheds. Dixon Tech aims to create employment opportunities for 1,800 people at the facility.

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Ami Organics to transfer production operations of speciality chemical biz at Ankleshwar to Jhagadia facility

Ami Organics Ltd will transfer the current production operations of specialty chemical business at Ankleshwar facility (acquired from Gujarat Organics Ltd) to a single location at the Jhagadia facility. This move is part of the company’s capacity and production rationalization exercise. The transfer will help the firm achieve better utilization of the plant and improve operational efficiency. Ami Organics is a research and development (R&D) driven pharmaceutical company based in Gujarat.

Indian Oil to invest Rs 9,028 cr to build new crude oil pipeline

Indian Oil Corp (IOC) will invest Rs 9,028 crore to build a new crude oil pipeline between Mundra in Gujarat and Panipat in Haryana. The pipeline will have a capacity of 17.5 million metric tonnes per annum (MTPA). IOC will also build nine crude oil tanks of 60,000 kilolitres each at Mundra. The company aims to raise the capacity of the Panipat refinery from 15 MTPA to 25 MTPA by the second quarter of 2024-25.

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Biocon initiates clinical study for Itolizumab in India after approval from DCGI

Biocon Biologics has initiated the clinical study for its drug Itolizumab in India after approval from the Drugs Controller General of India (DCGI). The clinical trial is to understand the possible use of Itolizumab to treat Lupus Nephritis, an autoimmune disease. The company’s partner, US-based Equillium Inc, has expanded its ‘EQUALISE’ study in Systemic Lupus Erythematosus (SLE) and Lupus Nephritis for Itolizumab to clinical centers in India.

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Editorial

Company Analysis: Dixon Technologies

Dixon Technologies Limited is one of the favourite stocks of retail investors as it has given enormous returns in the previous years. But do you know what their business is? Why do you never see their products being sold in a store even though they are said to make TVs, mobiles etc? Let’s jump in straight to analyse what the company is all about and what we can understand from their financials.

Company Profile – Dixon

Dixon Technologies (India) started manufacturing colour television in 1994 and slowly expanded its operations to various segments of electronics. The company was founded in 1993. Currently, it deals in manufacturing consumer durables, home appliances, lighting, mobile phones and security devices. They have 14 State-of-the-art manufacturing facilities and three R&D centres in India and China. These manufacturing sites are located in Uttar Pradesh, Uttarakhand and Andhra Pradesh. 

It provides design-focused solutions in consumer durables, lighting, mobile phones and security devices. In fact, they are the leading electronic manufacturing services (EMS) company in India. They already have a strong market hold in the smartphone segment even after starting the manufacturing in 2016 only. Not only smartphones, but they are also setting up in-house units to manufacture key components of the device like batteries and sheet material.

In 2020, they took another step to expand their reach by stepping into the manufacturing of medical equipment. They started making Quattro Real-Time Quantitative micro PCR Analyzer machines that can conduct 190-200 tests per day. This product was approved by the Indian Council of Medical Research (ICMR) for conducting Covid-19 tests.

The much-awaited share split

A stock that is trading at Rs 200 or Rs 2000 will have much higher liquidity as compared to a stock trading at Rs 20,000. A high percentage of retail investors will find it tough to invest in a stock that is trading at such a high price. You can compare it with an IPO. Generally, the minimum amount you need to invest in an IPO is Rs 15,000. You get a number of shares by investing Rs 15,000. 

In comparison to that, you won’t even get one share with that amount if Dixon was still traded at around Rs 20,000. Thus, many retail investors shy away from investing in these stocks as they are afraid that their capital will get stuck. To investor’s delight, Dixon announced a 1:5 Stock Split a few weeks back which brought it around the Rs 4,000 mark. It experienced a bit of correction which might have frightened some of the retail investors but it is back in the strong zone which tells that was just a momentary dip.

Robust Financials

Super strong!

I failed to hide my delight but the finances are just so healthy that I have a great smile on my face. From 2012 to 2021, their revenue has increased massively. In 2012, they had a total sales of Rs 573 crore and in 2021, they recorded it worth Rs 6449.75 crore! Over the past five years, total revenue has grown at a yearly rate of 30%. You might think that this might be only because of a boom in the whole industry. But the industry grew by only 14% in the same period.

Coming to the profits, it was recorded to be Rs 11 crore in 2015. After 6 years, in 2021, the net income is amassed to be Rs 159.80 crore. The yearly growth rate in profits in the last five years is mighty Rs 60%! How great does that sound? All of this success has been due to their increasing market share. In the past half-decade, their market share has increased by almost 5X times, from 2% to around 10%.

Earnings per share (EPS) is another pivotal metric for shareholders. In FY19, the EPS was Rs 11.19 and in FY21, this has zoomed up to Rs 27.49. At the beginning of the article, we termed Dixon as “one of the favourite stocks of retail investors”. The reason is that retail investors hold 35% of the stake in the company, joint-highest with a stake which is held by the promoters. From March 20 to March 21, the foreign institutions have almost doubled their stake from 10.76% to 19.84%. 

The automatic beneficiary of government schemes

The Indian government is keen to bolster its manufacturing capacity. They want to improve their trade balance. For that to happen, they are eager to cut imports by building their goods in India itself. Many initiatives like PLI Schemes and Make-in-India have given these companies a space to grow which is beyond one can imagine. 

For example, the Indian smartphone market is the second-largest smartphone market across the world. If the Indian government is incentivising foreign companies to manufacture here, companies like Dixon will benefit directly. Dixon manufactures not only a smartphone but TVs, washing machines and several consumer electronics in India. The scope of growth is huge, but can Dixon remain on the right path and continue to work tirelessly?

Have you enjoyed a rally in Dixon previously? Is this stock in your portfolio currently? Do make your own analysis before investing and let us know your insights on Dixon in the comments section of the Marketfeed application. Until next time!