172@29@17@145!~!172@29@0@53!~!|news|business|stocks|buy-dixon-technologies-target-of-rs-10700-dolat-capital-market-5971491.html!~!news|moneycontrol|com!~!|controller|infinite_scroll_article.php!~!is_mobile=false
Moneycontrol
FREE virtual training session on Passive Income Secrets: October 24 and 25, 2020, 10am to 1pm. Register Now!
Last Updated : Oct 16, 2020 01:08 PM IST | Source: Moneycontrol.com

Buy Dixon Technologies; target of Rs 10,700: Dolat Capital Market

Dolat Capital Market is bullish on Dixon Technologies has recommended buy rating on the stock with a target price of Rs 10,700 in its research report dated October 15, 2020.

Broker Research
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Dolat Capital Market's research report on Dixon Technologies


Winning a PLI has Dixon well placed to capture the mobile local manufacturing opportunities. It is expected to see an eight-fold jump in its mobile revenues (at the cap revenue for incentives) in FY22. At a 3% EBIDTA margin, the expected revenues from PLI should catapult its EPS to Rs236 from Rs165, while FY23 is expected to see an EPS of Rs297. We had downgraded the stock in Q1 purely on valuations based on our earlier numbers devoid of PLI.



Outlook


We incorporate the PLI numbers in our estimates, which gives it an earnings CAGR of 23% over FY20-23E. While we maintain our earlier multiple of 40x, we roll forward to Sep-22 which gives us a new target price of Rs10,700, and upgrade the stock to Buy.


For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Oct 16, 2020 01:08 pm
Sections