Asia focused research insights & advisory, Asia Advisors

Vinay Patel

Asia focused research insights & advisory

Asia Advisors

Asia Advisors is an independent financial advisory and research firm working closely with corporates and institutions to provide consulting solutions & research insights. We provide advisory services including capital solutions, business strategy and investment insights.
Firm is headed by Vinay Patel who has close to two decades of experience in research and business development at large, international investment banks such as HSBC and ICICI Securities. Led research efforts in areas of Macroeconomics, Asset Allocation & Investment Strategy for close to a decade in global & domestic research teams. As a business head in Singapore, advised top global investment management firms & Portfolio managers in Asia for India related investments.
Vinay was recently joined by Swapnil Manish, an investment banker and ex-ecommerce entrepreneur with more than 12 years of experience. Swapnil was the TMT banker at BNP Paribas and was part of several large M&A and ECM transactions (Bharti-Zain, Bharti Infratel IPO, Schneider-Zicom among several others). He's also had a stint as an ecommerce entrepreneur having launched & led Mumbai's first online grocery player.

Equity Capital Markets

Dixon Technologies India Ltd / Equity Capital Markets

<p>Dixon Technologies India Limited (DTIL) is raising approximately US$93.6m by selling 3.4m shares via a public offer on NSE &amp; BSE at a price of Rs1760-1766 (book building). Majority of the issue is an offer for sale (3.05m shares under OFS) and by the Motilal Oswal PE Fund (57%) and the promoters (33%) while fresh share issuance is only 0.34m (10%). DTIL is a leading player in the EMS/OMD industry in India and manufacturers LED TV, CFL lights &amp; Mobile phones for a variety of brands like Philips, Panasonic etc. The company has recorded strong sales and PAT CAGR of 34% and 78% in last 4 years along with strong return ratio (RoCE at 25.5% and RoE at 36.5%). However, we believe that the EMS/ODM industry has very low entry barriers and low margins thereby not justifying high valuations of 40xFy17 earnings. The company also has high client concentration with top two clients constituting 60% of the business and top 5 at 83% thereby adding to the potential risks. We would, therefore, avoid the public offering even as we are aware that that the Company is being marketed as a play on India's manufacturing resurgence (govt promoting domestic manufacturing of mobiles etc) and the momentum for IPOs, in general, remains strong.</p>

Dixon Technologies India Limited (DTIL) is raising approximately US$93.6m by selling 3.4m shares via a public offer on NSE &amp; BSE at a price of Rs1760-1766 (book building). Majority of the issue is an offer for sale (3.05m shares under OFS) and by the Motilal Oswal PE Fund (57%) and the promoters (33%) while fresh share issuance is only 0.34m (10%). DTIL is a leading player in the EMS/OMD industry in India and manufacturers LED TV, CFL lights &amp; Mobile phones for a variety of brands like Philips, Panasonic etc. The company has recorded strong sales and PAT CAGR of 34% and 78% in last 4 years along with strong return ratio (RoCE at 25.5% and RoE at 36.5%). However, we believe that the EMS/ODM industry has very low entry barriers and low margins thereby not justifying high valuations of 40xFy17 earnings. The company also has high client concentration with top two clients constituting 60% of the business and top 5 at 83% thereby adding to the potential risks. We would, therefore, avoid the public offering even as we are aware that that the Company is being marketed as a play on India's manufacturing resurgence (govt promoting domestic manufacturing of mobiles etc) and the momentum for IPOs, in general, remains strong.

Dixon Technologies (IPO): An Expensive Play on the India EMS/ODM Manufacturing; Low Entry Barriers

United States

Plexus Corp. is a participant in the electronics manufacturing services (EMS) industry, providing product design, supply chain, materials management, manufacturing, test, fulfillment, and aftermarket solutions to branded product companies in the wireline and networking, wireless infrastructure, medical, industrial and commercial, defense, security, and aerospace market sectors.

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Plexus Corp (PLXS US)

Dixon Technologies (IPO): An Expensive Play on the India EMS/ODM Manufacturing; Low Entry Barriers

Dixon Technologies India Limited (DTIL) is raising approximately US$93.6m by selling 3.4m shares via a public offer on NSE & BSE at a price of...

Asia Advisors

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