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Last Updated : Aug 19, 2019 01:45 PM IST | Source: Moneycontrol.com

Accumulate Dixon Technologies; target of Rs 2230: Dolat Capital

Dolat Capital recommended accumulate rating on Dixon Technologies with a target price of Rs 2230 in its research report dated August 13, 2019.

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Dolat Capital's research report on Dixon Technologies


The Q1FY20 results were more than our estimates, and both EBDITA margins and working capital improved, due to strong performance in the consumer electronics segment. Management expects this improvement to continue. As WC improves, debt fell from `1bn to Rs700mn. We expect EPS to grow at a CAGR of 26% over FY19-21E, given strong traction with key customers in its TV and lighting business. The mobile segment should also grow with addition of new customers. Given the better-than-expected Q1 results, we increase our FY20 estimates for sales/PAT by 6%/9% YoY.


Outlook


We upgrade the stock to Accumulate, from Reduce, with a TP of `2,230 valuing it at 22x for FY21E.


For all recommendations report, click here


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First Published on Aug 19, 2019 01:45 pm
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