DIXON - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.2

📊 DIXON shows moderate potential for swing trading but faces weak technical momentum. Current price (₹13,266) is below both 50 DMA (₹14,823) and 200 DMA (₹15,329), reflecting bearish sentiment. RSI at 37.6 indicates oversold conditions, while MACD (-548) confirms strong negative momentum. Valuation is highly stretched with a P/E of 143 compared to industry average of 28.0. Fundamentals show improvement with quarterly PAT rising sharply. Optimal entry would be near ₹12,800–₹13,000 if support holds. If already holding, exit near ₹14,500–₹14,800 resistance unless momentum strengthens.

✅ Positive

• 📈 Quarterly PAT surged from ₹15.9 Cr. to ₹479 Cr. (+728%)
• 📊 EPS at ₹128 supports valuation strength
• 📉 Debt-to-equity at 0.28 indicates manageable leverage
• 📈 DII holding increased (+2.25%), showing domestic investor confidence
• 📊 Strong trading volume above weekly average, indicating liquidity

⚠️ Limitation

• 📉 Current price below both 50 DMA and 200 DMA
• 📊 RSI oversold but MACD strongly negative
• 📉 Extremely high P/E ratio (143 vs industry 28.0)
• ⚠️ Low dividend yield (0.06%)
• 📉 ROCE (11.7%) and ROE (8.71%) remain modest

🚨 Company Negative News

• 📉 Valuation stretched compared to industry peers
• ⚠️ Weak technical indicators despite strong earnings

🌟 Company Positive News

• 📈 Exceptional quarterly profit growth (+728%)
• 📊 Domestic institutional investors increasing stake

🏭 Industry

• 📊 Industry P/E at 28.0, far lower than company’s 143
• 📈 Electronics manufacturing sector has strong long-term demand outlook

📌 Conclusion

⚖️ DIXON is a fair swing trade candidate with strong earnings momentum but stretched valuations and weak technicals. Entry is favorable near ₹12,800–₹13,000 on dips. For existing holders, exit near ₹14,500–₹14,800 resistance is advisable unless RSI and MACD show stronger recovery.

I can also outline DIXON’s short-term support and resistance zones to help you track entry and exit levels more clearly.