This Multibagger Large-Cap Stock Soared 181 per cent in a year and Is Now Expanding Manufacturing with a Rs 133 Crore Acquisition
The company's subsidiary is acquiring KHY Electronic's assets for Rs 133 crore, boosting manufacturing capacity. The stock delivered 181 per cent multibagger returns in 12 months.
Dixon Technologies (India) Limited has announced that its subsidiary, IsmartU India Private Limited ("IIPL"), has signed a Binding Memorandum of Understanding ("MOU") with KHY Electronic India Private Limited on January 18, 2025. Under the terms of the MOU, IIPL will acquire land, building, machinery, and other tangible assets ("Assets") from KHY. The acquisition will be made for a total consideration of up to Rs 133 Crores, excluding applicable taxes.
The primary purpose of this acquisition is to enhance the manufacturing capacity of IIPL, strengthening its operational capabilities.
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Also, on today, January 20th, 2025, the BOD of the company is to Consider And Approve The Financial Results For The Period Ending December 31, 2024.
Dixon Technologies Ltd, incorporated in 1993, is a Electronic Manufacturing Services (EMS) company with operations in the electronic products vertical such as consumer electronics, lighting, home appliance, closed-circuit television cameras (CCTVs), and mobile phones. It also undertakes reverse logistics operations. Besides, it manufactures security surveillance equipment, wearables & audibles, AC-PCBs. Recently, it has entered a JV with Imagine Marketing Private Limited for designing and manufacturing wireless audio solutions in India.
Dixon Technologies (India) Limited currently has a market capitalisation of Rs 1,04,355 crore, with its stock priced at Rs 17,372. The stock has a 52-week high and low of Rs 19,150 and Rs 5,783, respectively. It trades at a price-to-earnings (P/E) ratio of 186, whereas the industry price-to-earnings (P/E) ratio is 38.6x, indicating stock trading at a premium, with a book value of Rs 372. The company's stock price has given 181 per cent multibagger returns in last 12 months.
Investors should keep an eye on this Large-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.