Overview

• Dixon has signed a binding agreement to acquire a 51% stake in Q Tech India through primary and secondary investments to bolster its camera and fingerprint module manufacturing.
• The company concurrently inked a 76/24 joint venture with Chongqing Yuhai Precision Manufacturing to produce high-precision parts for smartphones, IoT devices, laptops and automotive applications.
• Both transactions are pending government approval under Press Note 3, which is expected to expedite clearance and qualify them for incentives under the Electronics Components Manufacturing Scheme.
• Q Tech India ranks among the top five global camera module suppliers, producing 42–49 million units annually and posting FY25 revenue of Rs 2.6 billion with Rs 1.6 billion in EBITDA.
• CLSA initiated coverage on Dixon with a High Conviction Outperform rating and a Rs 15,800 target price, citing enhanced backward integration and regulatory support as growth catalysts.