Sharekhan's research report on Dixon Technologies
Strong manufacturing base across products, capacity expansion/volume growth in washing machines, LED TVs and security systems and new customer additions in mobile, washing machines and IT would drive revenues. Ramp-up of high margin original design manufacturer (ODM) products, liquidation of high-cost inventory, cost optimization and a fall in input prices, would improve profitability. Healthy balance sheet, low working capital and strong revenue/PAT CAGR of ~33%/~49% over FY22-25E justify its rich valuation.
We retain a Buy on Dixon Technologies (Dixon) with a revised PT of Rs. 4,960 given its leadership in outsourcing consumer electronics/ electronics manufacturing services (EMS) industry, approvals under PLI schemes, a diversified product mix and robust long-term growth outlook.
At 17:30 Dixon Technologies was quoting at Rs 4,376.30, up Rs 114.95, or 2.70 percent.
It has touched an intraday high of Rs 4,412.55 and an intraday low of Rs 4,247.50.
It was trading with volumes of 5,942 shares, compared to its thirty day average of 16,202 shares, a decrease of -63.33 percent.
In the previous trading session, the share closed up 0.16 percent or Rs 6.60 at Rs 4,261.35.
The share touched its 52-week high Rs 6,240.00 and 52-week low Rs 3,185.05 on 19 October, 2021 and 16 May, 2022, respectively.
Currently, it is trading 29.87 percent below its 52-week high and 37.4 percent above its 52-week low.
Market capitalisation stands at Rs 25,969.81 crore.
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