DIXON - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.8
| Stock Code | DIXON | Market Cap | 67,894 Cr. | Current Price | 11,166 ₹ | High / Low | 18,472 ₹ |
| Stock P/E | 90.9 | Book Value | 468 ₹ | Dividend Yield | 0.07 % | ROCE | 11.7 % |
| ROE | 8.71 % | Face Value | 2.00 ₹ | DMA 50 | 10,921 ₹ | DMA 200 | 12,742 ₹ |
| Chg in FII Hold | -0.38 % | Chg in DII Hold | -0.92 % | PAT Qtr | 187 Cr. | PAT Prev Qtr | 479 Cr. |
| RSI | 55.4 | MACD | 204 | Volume | 4,84,216 | Avg Vol 1Wk | 7,45,195 |
| Low price | 9,600 ₹ | High price | 18,472 ₹ | PEG Ratio | 78.3 | Debt to equity | 0.28 |
| 52w Index | 17.7 % | Qtr Profit Var | 7,383 % | EPS | 159 ₹ | Industry PE | 45.1 |
Analysis: Dixon Technologies (DIXON) shows strong technical momentum but weak fundamentals. Current price (11,166 ₹) is above DMA 50 (10,921 ₹) but below DMA 200 (12,742 ₹), indicating short-term bullishness with medium-term resistance. RSI at 55.4 suggests neutral momentum, while MACD (204) supports positive strength. ROCE (11.7%) and ROE (8.71%) are relatively weak. Quarterly PAT dropped sharply (187 Cr. vs 479 Cr.), though profit variation shows a rebound (7,383%). Valuation is stretched with P/E of 90.9 compared to industry PE of 45.1, and PEG ratio of 78.3 highlights poor growth prospects. EPS of 159 ₹ adds earnings visibility, but institutional investors reduced holdings (FII -0.38%, DII -0.92%).
Optimal Entry Price: Around 10,900–11,000 ₹ (near DMA 50 support).
Exit Strategy if Holding: Consider booking profits near 11,600–11,800 ₹ unless momentum sustains above 12,000 ₹ resistance.
✅ Positive
- Stock trading above DMA 50 indicates short-term bullishness.
- EPS of 159 ₹ supports valuation strength.
- Quarterly profit rebound with 7,383% variation.
- Strong market cap (67,894 Cr.) adds stability.
⚠️ Limitation
- High P/E (90.9) compared to industry average (45.1).
- Weak ROCE (11.7%) and ROE (8.71%).
- Quarterly PAT decline (187 Cr. vs 479 Cr.).
- Institutional investors reduced holdings (FII -0.38%, DII -0.92%).
📰 Company Negative News
- No major negative news reported, but sharp profit decline and stretched valuation are concerns.
🌟 Company Positive News
- Quarterly profit rebound supports investor sentiment.
- Strong EPS adds earnings visibility.
🏭 Industry
- Industry P/E at 45.1 suggests Dixon trades at a steep premium.
- Electronics manufacturing sector remains growth-oriented but cyclical, influenced by consumer demand.
📌 Conclusion
Dixon Technologies is a moderately risky candidate for swing trading. Entry around 10,900–11,000 ₹ offers a safer risk-reward setup, while exit near 11,600–11,800 ₹ is advisable unless momentum sustains above 12,000 ₹. Strong EPS and profit rebound are positives, but weak efficiency metrics and premium valuation warrant cautious optimism.
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