The approval of Dixon Technologies' Vivo joint venture is expected to lift production volumes, while backward integration and export opportunities could support margins and earnings growth
Chinese mobile company Vivo plans to hive off its Noida-based manufacturing unit to its upcoming joint venture with domestic electronics manufacturing services firm Dixon Technologies and move to an asset-light business model in India, sources aware of the development told PTI. The government on Wednesday approved Vivo Mobile India's application to form a joint venture with Dixon Technologies. The approval came after about 18 months of signing a pact between the two companies. "Vivo's Noida manufacturing unit will become part of the JV and gradually the mobile company will move to an asset-light business model," a source aware of the development said. Email query sent to Vivo and Dixon in this regard did not elicit any immediate reply. Dixon Technologies will hold a 51 per cent stake in the proposed JV and Vivo Mobile India Private Limited (VMI) will hold 49 per cent stake. The JV company will carry on the business as an original equipment manufacturer (OEM) of electronic devices
Dixon Technologies today was up 4 per cent intraday as the company secured government approval to set up its joint venture (JV) with Vivo Mobile India (VMI).
The proposed joint venture has already secured clearance from an inter-ministerial panel, with formal government approval expected soon to operationalise the partnership
Today's rally was buoyed by a report that the government is likely to clear Dixon-Vivo JV this month, which will reduce the risk exposure of the Chinese mobile company to India.
Ajit Mishra of Religare Broking expects SAIL to rally to ₹240, and Dixon Technologies past ₹13,000-mark; whereas, he cautions Kaynes Technology could crack to ₹2,500 if it breaks key support.
Dixon Technologies expects export growth, speciality EMS expansion and the proposed Vivo joint venture to support earnings amid margin pressures and weak demand
Dixon Technologies' Q4FY26 results have raised concerns over weak smartphone demand, fading PLI incentives and delay in Vivo JV approval.
Q4FY26 company results: Firms including Berger Paints, Torrent Power, Max Financial Services, Nazara Technologies, and Vinati Organics are also to release their January-March earnings today
Motilal Oswal sees 30% upside in Dixon Technologies share price despite near-term headwinds from weak smartphone demand and rising costs. The brokerage has reiterated 'Buy' with ₹14,700 target price
Analysts believe that the EMS industry is a key component of India's broader electronics ecosystem and has shown strong growth in recent years
Analysts said that companies involved in sectors like EV, EMS, auto ancillary, BESS, renewable energy, and specialty chemicals are expected to benefit most from the easing FDI rules
Dixon Technologies shares surged after MeitY approved its joint venture with HKC Overseas to manufacture display modules, with analysts expecting improved margins and value addition
The buying on the counter came after Ministry of Electronics and Information Technology approved Dixon Tech's joint venture (JV) with HKC Overseas to manufacture display modules
There are hopes of a turnaround in overall corporate earnings after six quarters of single digit growth
The brokerage added that Dixon Tech's ramp-up in information technology (IT) hardware and telecom remains on track and could support growth
Motilal Oswal estimates a 30 per cent compound annual growth rate (CAGR) in aggregate revenue of their EMS coverage companies over FY25-28.
Dixon CMD Atul Lall says India is at an electronics manufacturing inflection point and must deepen value addition, create IP and expand global capacity as schemes drive rapid sectoral growth
From a ₹49 lakh crisis-born firm to a ₹65,000 crore giant, Dixon's MD & CEO maps India's electronics leap, AI-led factories, global ambitions, and the long road to owning IP
CLSA downgraded Dixon Technologies to 'Hold' from 'Outperform', cutting its target price to ₹12,100 from ₹15,880 per share