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Dixon Tech Shares: Analysts see up to 55% value addition for smartphone biz after JV, dealDixon Technologies has agreed to acquire a 51% stake in Q Tech India, which has a camera module manufacturing capacity of approximately 4 million units per month. Additionally, it has signed a 74:26 joint venture agreement with Chongqing Yuhai to manufacture enclosures.By Meghna Sen   July 16, 2025, 8:02:53 AM IST (Published)2 Min ReadGlobal brokerage firm CLSA has maintained its 'high conviction outperform' rating on Dixon Technologies, with a price target of ₹19,000 per share, citing revving growth engines.

The brokerage wrote in its note that Dixon has taken significant steps to increase value addition in smartphones by venturing into camera module and enclosures.

The company has agreed to acquire a 51% stake in Q Tech India, which has a camera module manufacturing capacity of approximately 4 million units per month.

Additionally, Dixon has signed a 74:26 joint venture agreement with Chongqing Yuhai to manufacture enclosures.

CLSA estimates that these initiatives, along with the existing joint venture with HKC for display modules, could increase Dixon's value addition in smartphones to around 45-55%, up from the current 15-17%.

The brokerage added that this could boost margins by 150-200 basis points and open a new revenue stream via external sales.

Nomura has also issue a 'Buy' rating on Dixon Tech, with a price target of ₹21,409 per share.

Nomura highlighted Dixon's foray into the camera module segment through Q Tech India, noting that the company is expanding its value-add further with both camera modules and precision components. This move could potentially increase EPS by 5%.

The company is entering the precision components segment through a 74% joint venture with Chongqing Yuhai.

Further, Nomura said that the acquisition of a 51% stake in an existing Indian entity will accelerate integration and avoid delays related to regulatory approvals.

Dixon Technologies (India) Ltd. has signed a binding term sheet to acquire a 51% stake in Kunshan Q Tech Microelectronics (India). The acquisition will be completed through a combination of primary and secondary investments, according to a regulatory filing.

The deal is expected to provide Dixon, a homegrown manufacturer of consumer durables and electronics, access to advanced technologies, high-precision manufacturing capabilities, and specialised talent.

While Q Tech India is primarily known for camera modules, it also offers services in IT support, cybersecurity, home automation, and web development.

Shares of Dixon Technologies (India) Ltd. ended 0.59% lower on Tuesday at ₹15,804. The stock has gained over 10% in the past month.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsDixon TechDixon Technologiesshare market today