DIXON - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.2
| Stock Code | DIXON | Market Cap | 66,920 Cr. | Current Price | 11,031 ₹ | High / Low | 18,472 ₹ |
| Stock P/E | 89.6 | Book Value | 468 ₹ | Dividend Yield | 0.07 % | ROCE | 11.7 % |
| ROE | 8.71 % | Face Value | 2.00 ₹ | DMA 50 | 12,205 ₹ | DMA 200 | 14,268 ₹ |
| Chg in FII Hold | -2.01 % | Chg in DII Hold | 0.13 % | PAT Qtr | 187 Cr. | PAT Prev Qtr | 479 Cr. |
| RSI | 46.0 | MACD | -572 | Volume | 16,78,408 | Avg Vol 1Wk | 12,79,743 |
| Low price | 9,828 ₹ | High price | 18,472 ₹ | PEG Ratio | 77.2 | Debt to equity | 0.28 |
| 52w Index | 13.9 % | Qtr Profit Var | 7,383 % | EPS | 159 ₹ | Industry PE | 25.0 |
📊 Dixon Technologies (DIXON) shows strong market presence and EPS growth but faces extreme valuation, weak efficiency ratios, and bearish technical signals. It is a cautious candidate for swing trading, suitable only for short-term trades near strong support levels.
✅ Optimal Entry Price: 10,900–11,000 ₹ (near support zone close to 52-week low)
🚪 Exit Strategy if Holding: Consider exiting near 11,800–12,000 ₹ (short-term resistance zone around 50 DMA) or if RSI moves above 55.
Positive
- 💡 EPS of 159 ₹ supports strong earnings base.
- 📈 Large market cap of 66,920 Cr. ensures liquidity and investor confidence.
- 🏦 Debt-to-equity ratio of 0.28 indicates manageable leverage.
- 📊 Quarterly profit variation (+7,383%) shows sharp rebound compared to prior weakness.
- 📈 Strong trading volumes above weekly average, showing active participation.
Limitation
- ⚠️ Very high P/E (89.6) compared to industry average (25.0), suggesting severe overvaluation.
- 📉 Weak ROCE (11.7%) and ROE (8.71%) indicate poor efficiency.
- 🔻 MACD (-572) signals strong bearish momentum.
- 📊 Dividend yield of 0.07% is negligible, offering no passive income.
- 📉 Current price well below 50 DMA (12,205 ₹) and 200 DMA (14,268 ₹), reflecting technical weakness.
Company Negative News
- 📉 Decline in FII holdings (-2.01%) shows reduced foreign investor confidence.
- 📊 PAT dropped sharply from 479 Cr. to 187 Cr., highlighting earnings volatility.
Company Positive News
- 📈 Increase in DII holdings (+0.13%) reflects marginal domestic institutional support.
- 📊 EPS growth and profit variation show potential for recovery despite recent weakness.
Industry
- 🏭 Industry P/E at 25.0 is far lower than Dixon’s 89.6, highlighting extreme premium valuation.
- 📈 Electronics manufacturing services sector remains in demand, supported by government initiatives and rising domestic production.
Conclusion
🔎 Dixon Technologies is fundamentally overvalued and technically weak, despite strong EPS and profit rebound. Swing traders may cautiously enter near 10,900–11,000 ₹ and exit near 11,800–12,000 ₹. Monitoring RSI and MACD is crucial, as momentum indicators suggest limited upside unless a reversal occurs.