DIXON - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | DIXON | Market Cap | 67,894 Cr. | Current Price | 11,166 ₹ | High / Low | 18,472 ₹ |
| Stock P/E | 90.9 | Book Value | 468 ₹ | Dividend Yield | 0.07 % | ROCE | 11.7 % |
| ROE | 8.71 % | Face Value | 2.00 ₹ | DMA 50 | 10,921 ₹ | DMA 200 | 12,742 ₹ |
| Chg in FII Hold | -0.38 % | Chg in DII Hold | -0.92 % | PAT Qtr | 187 Cr. | PAT Prev Qtr | 479 Cr. |
| RSI | 55.4 | MACD | 204 | Volume | 4,84,216 | Avg Vol 1Wk | 7,45,195 |
| Low price | 9,600 ₹ | High price | 18,472 ₹ | PEG Ratio | 78.3 | Debt to equity | 0.28 |
| 52w Index | 17.7 % | Qtr Profit Var | 7,383 % | EPS | 159 ₹ | Industry PE | 45.1 |
📊 Dixon Technologies (DIXON) shows modest fundamentals despite its large market cap of ₹67,894 Cr. ROE (8.71%) and ROCE (11.7%) are weak, reflecting limited efficiency. Debt-to-equity at 0.28 is manageable, and EPS of ₹159 provides earnings visibility. Dividend yield of 0.07% is negligible. Quarterly PAT dropped sharply (479 Cr → 187 Cr), raising concerns about earnings volatility. Valuation is severely stretched with P/E (90.9) compared to industry average (45.1), while PEG ratio (78.3) signals poor growth-adjusted value. Technicals show neutral momentum with RSI (55.4), MACD (204), and price trading above 50 DMA (10,921 ₹) but below 200 DMA (12,742 ₹).
🎯 Entry Zone: 10,900 ₹ – 11,100 ₹ (near 50 DMA support)
📌 Long-Term Holding: Risky due to weak efficiency and extreme overvaluation. Suitable only for cautious accumulation with strict stop-loss discipline. Long-term compounding potential is limited unless profitability improves significantly.
Positive
- EPS of ₹159 supports earnings visibility.
- Price trading above 50 DMA indicates near-term strength.
- Manageable debt-to-equity (0.28).
- Strong historical price performance with 52w Index at 17.7% despite volatility.
Limitation
- Extremely high P/E (90.9) vs industry average (45.1).
- Weak ROE (8.71%) and ROCE (11.7%).
- Quarterly PAT decline (479 Cr → 187 Cr) highlights earnings weakness.
- Negative institutional sentiment with FII (-0.38%) and DII (-0.92%) outflows.
- PEG ratio (78.3) indicates poor growth-adjusted valuation.
Company Negative News
- Sharp decline in quarterly PAT raises concerns about operational performance.
- Institutional outflows (FII and DII) show reduced confidence.
Company Positive News
- EPS remains strong despite profit volatility.
- Technical support near 50 DMA provides short-term stability.
Industry
- Industry P/E (45.1) is far lower than DIXON’s 90.9, highlighting severe overvaluation.
- Electronics manufacturing sector remains growth-oriented, supported by government initiatives and rising domestic demand.
Conclusion
⚠️ DIXON is financially stable with manageable debt but faces weak efficiency and severe overvaluation. Entry around 10,900–11,100 ₹ offers limited risk-reward. Long-term holding is justified only with cautious exposure, as upside depends on sustained profitability improvement. Partial exits near 11,500–11,600 ₹ are advisable if momentum fails to sustain above resistance.
This structured HTML report captures Dixon Technologies’ strong EPS visibility but highlights its weak efficiency and severe valuation risks. If you’d like, I can extend this into a peer benchmarking overlay against other EMS players like Amber Enterprises or Syrma SGS to show relative positioning. Would you like me to prepare that next?