DIXON - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.0

📈 Positive

• 📈 Quarterly PAT surged 728% (₹479 Cr. vs ₹15.9 Cr.), indicating a major earnings rebound.
• 📈 EPS of ₹128 supports strong earnings visibility and valuation strength.
• 📈 DII holding increased by 2.25%, showing strong domestic institutional confidence.
• 📈 FII holding also increased by 0.14%, indicating foreign investor interest.
• 📈 Trading near DMA200 (₹15,698), suggesting potential support zone for accumulation.

⚠️ Limitation

• 📉 Extremely high P/E of 167 vs industry average of 26.6 suggests significant overvaluation.
• 📉 PEG ratio of 144 implies valuation is not supported by sustainable growth.
• 📉 ROCE of 11.7% and ROE of 8.71% reflect modest capital efficiency.
• 📉 Dividend yield of 0.05% offers negligible passive income.
• 📉 MACD at -484 and RSI at 35.5 indicate bearish technical momentum.

📰 Company Negative News

• 📉 Stock down 47.4% from 52-week high, reflecting valuation correction or sectoral pressure.
• 📉 Trading below DMA50 (₹16,655), confirming short-term weakness.

🌟 Company Positive News

• 📈 Strong quarterly earnings highlight operational turnaround and margin expansion.
• 📈 Volume near 1-week average suggests stable investor engagement.

📺 Industry

• 📺 DIXON operates in electronics manufacturing services (EMS), serving consumer electronics, lighting, and mobile segments.
• 📊 Industry P/E of 26.6 reflects moderate growth expectations and competitive pricing pressures.

🧭 Conclusion

• 📌 Suggested entry zone: ₹15,200–₹15,500, near DMA200 and RSI support for better margin of safety.
• 🕰️ Long-term holding favorable due to strong earnings rebound and sectoral tailwinds, but valuation remains a concern.
• ⚖️ Monitor technical recovery and margin consistency before aggressive accumulation.