⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
DIXON - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | DIXON | Market Cap | 65,219 Cr. | Current Price | 10,718 ₹ | High / Low | 18,472 ₹ |
| Stock P/E | 87.3 | Book Value | 468 ₹ | Dividend Yield | 0.07 % | ROCE | 11.7 % |
| ROE | 8.71 % | Face Value | 2.00 ₹ | DMA 50 | 11,167 ₹ | DMA 200 | 13,379 ₹ |
| Chg in FII Hold | -2.01 % | Chg in DII Hold | 0.13 % | PAT Qtr | 187 Cr. | PAT Prev Qtr | 479 Cr. |
| RSI | 50.4 | MACD | -186 | Volume | 7,72,104 | Avg Vol 1Wk | 7,99,951 |
| Low price | 9,620 ₹ | High price | 18,472 ₹ | PEG Ratio | 75.2 | Debt to equity | 0.28 |
| 52w Index | 12.4 % | Qtr Profit Var | 7,383 % | EPS | 159 ₹ | Industry PE | 36.0 |
📊 Core Financials
- Revenue Growth: PAT dropped sharply (₹187 Cr vs ₹479 Cr), showing earnings volatility
- Profit Margins: EPS ₹159, moderate but under pressure
- Debt Ratio: Moderate leverage (Debt-to-Equity 0.28)
- Cash Flows: Supported by scale, but profitability fluctuates
- Return Metrics: ROCE 11.7%, ROE 8.71% — modest efficiency
💹 Valuation Indicators
- P/E Ratio: 87.3 (far above industry PE of 36.0, highly overvalued)
- P/B Ratio: ~22.9 (premium valuation)
- PEG Ratio: 75.2 (extremely high, growth priced expensively)
- Intrinsic Value: Current price ₹10,718 is near support (₹9,620), but valuation remains stretched
🏢 Business Model & Competitive Advantage
- India’s largest electronics manufacturing services (EMS) company
- Strong partnerships with global brands and diversified product portfolio
- Moderate debt but manageable balance sheet
- Dividend yield of 0.07% is very modest
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹9,600–₹10,800 range (near support levels)
- Long-Term Holding: Suitable for aggressive investors betting on EMS sector growth
- Risk: Premium valuation and earnings volatility may limit upside
✅ Positive
- Strong industry leadership in EMS
- EPS of ₹159 supports valuation despite volatility
- DII holdings increased (+0.13%), showing domestic investor support
⚠️ Limitation
- P/E ratio significantly higher than industry average
- High PEG ratio indicates expensive growth
- Quarterly PAT dropped sharply from ₹479 Cr to ₹187 Cr
📰 Company Negative News
- Decline in FII holdings (-2.01%) shows reduced foreign investor confidence
- Stock trading below DMA 50 & DMA 200, showing weak momentum
🌟 Company Positive News
- DII holdings increased (+0.13%), showing domestic investor support
- Quarterly profit variation shows strong rebound despite volatility
🏦 Industry
- Electronics manufacturing sector with strong long-term demand
- Industry PE at 36.0, DIXON trades far above this, showing premium valuation
- Sector growth supported by government incentives and rising consumer electronics demand
🔎 Conclusion
- DIXON offers strong industry leadership but faces earnings volatility
- Valuation is extremely expensive compared to industry peers
- Entry near ₹9,600–₹10,800 is favorable only for high-risk investors
- Best suited for portfolios seeking EMS exposure with aggressive growth outlook