DIXON - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.8
| Stock Code | DIXON | Market Cap | 61,928 Cr. | Current Price | 10,194 ₹ | High / Low | 18,472 ₹ |
| Stock P/E | 82.9 | Book Value | 468 ₹ | Dividend Yield | 0.08 % | ROCE | 11.7 % |
| ROE | 8.71 % | Face Value | 2.00 ₹ | DMA 50 | 11,129 ₹ | DMA 200 | 13,347 ₹ |
| Chg in FII Hold | -2.01 % | Chg in DII Hold | 0.13 % | PAT Qtr | 187 Cr. | PAT Prev Qtr | 479 Cr. |
| RSI | 43.8 | MACD | -195 | Volume | 6,77,303 | Avg Vol 1Wk | 7,25,284 |
| Low price | 9,620 ₹ | High price | 18,472 ₹ | PEG Ratio | 71.4 | Debt to equity | 0.28 |
| 52w Index | 6.48 % | Qtr Profit Var | 7,383 % | EPS | 159 ₹ | Industry PE | 35.8 |
📊 Dixon Technologies (DIXON) shows weak fundamentals for swing trading with very high P/E (82.9), low ROCE (11.7%), and ROE (8.71%). Technical indicators are bearish (RSI 43.8, MACD -195, price below 50 & 200 DMA). Despite strong EPS (₹159) and large market cap, steep valuation and declining profits make it a risky candidate for short-term trades.
💡 Optimal Entry Price: Around ₹10,000–10,200, near strong support levels.
📈 Exit Strategy (if already holding): Consider exiting near ₹11,000–11,200 if recovery occurs, or cut losses if price falls below ₹9,950 decisively.
Positive
- Large market cap (₹61,928 Cr.) ensures liquidity and credibility.
- EPS of ₹159 reflects strong earnings base.
- Debt-to-equity ratio of 0.28 indicates manageable leverage.
- DII holdings increased (+0.13%), showing domestic institutional support.
Limitation
- Extremely high P/E (82.9) compared to industry average (35.8), suggesting steep overvaluation.
- Low ROCE (11.7%) and ROE (8.71%) indicate weak capital efficiency.
- PEG ratio (71.4) suggests poor growth-adjusted valuation.
- Price trading below both 50 DMA (11,129) and 200 DMA (13,347), confirming bearish trend.
Company Negative News
- FII holdings decreased (-2.01%), showing reduced foreign investor confidence.
- Quarterly PAT dropped sharply from ₹479 Cr. to ₹187 Cr., highlighting earnings pressure.
Company Positive News
- DII holdings increased (+0.13%), reflecting domestic support.
- Quarterly profit variation (+7,383%) indicates recovery from prior weak performance.
Industry
- Industry P/E at 35.8 is much lower than Dixon’s, suggesting the stock trades at a steep premium.
- Electronics manufacturing sector remains growth-oriented, supported by government initiatives and rising domestic demand.
Conclusion
⚖️ Dixon Technologies is fundamentally strong in scale but technically weak, with high valuation and declining profits. Swing traders may cautiously enter near support (~₹10,000–10,200) and exit near resistance (~₹11,000–11,200). Conservative traders should avoid until technical indicators improve and earnings stabilize.