DIXON - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.5

🧬 Core Financial Health

Profitability & Growth

EPS: ₹197 ➜ exceptional earnings power relative to peers

Qtr PAT: ₹225 Cr → ₹227 Cr ➜ flat QoQ but up 68.3% YoY — impressive

ROE: 32.9% | ROCE: 39.8% ➜ industry-beating returns; elite capital efficiency

Balance Sheet

Debt-to-Equity: 0.22 ➜ manageable leverage ➜ supports growth without overstretch

Dividend

Yield: 0.03% ➜ minimal payouts; reinvestment focus typical of growth stocks

💸 Valuation Insights

Metric Value Assessment

P/E Ratio 118 hefty multiple ➜ signals high growth expectations

P/B Ratio ~33.57 (₹16,784 / ₹500) ➜ extremely premium valuation

PEG Ratio 1.98 fair relative to expected growth ➜ not unreasonable

📉 Verdict: Valuation stretched — justified only if high-growth narrative continues. Market pricing in future expansion, margins, and leadership in EMS (Electronics Manufacturing Services).

🏗️ Business Model & Edge

India's leading EMS provider ➜ like a “contract manufacturer” for electronics

Clients include Samsung, Xiaomi, BoAt, Philips, Panasonic, and Reliance Retail

Competitive Advantages

Scalability via asset-light approach with quick deployment

Strong focus on PLI schemes, component localization, and backward integration

Trusted relationships with marquee brands ➜ sticky revenues

📈 Technical & Sentiment Outlook

RSI: 70.7 ➜ overbought zone — could trigger consolidation or pullback

MACD: 465 ➜ strong bullish trend confirmation

Price comfortably above DMA 50 & 200 ➜ momentum intact

FII holding ↓ 1.26% ➜ mild foreign profit-taking

DII holding ↑ 3.61% ➜ domestic institutions showing confidence

✅ Suggested Entry Zone: ₹15,200–₹16,000 📌 Ideal for long-term investors post minor correction or broader market dip

🧭 Long-Term Holding View

🧠 Suited for investors betting on

India’s electronics indigenization & Make-in-India push

Long-term exponential growth in consumer durables, wearables, and smartphones

📊 Key Monitoring Triggers

Execution of PLI schemes

Client diversification (global OEMs)

Margin trajectory and backward integration in semi-critical components

Would you like me to chart Dixon against other EMS leaders or consumer electronics players like Syrma SGS or PG Electroplast? Could help narrow down valuation-to-growth sweet spots.

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