DIXON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical 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 |
📊 Chart & Trend Analysis: DIXON is trading at ₹10,718, below both its 50 DMA (₹11,167) and 200 DMA (₹13,379), indicating bearish momentum. RSI at 50.4 suggests neutral positioning. MACD at -186 confirms strong negative momentum. Bollinger Bands show price leaning towards the lower band, with support near ₹9,620.
📈 Momentum Signals: Current volume (7.72 lakh) is slightly below the 1-week average (7.99 lakh), showing reduced participation. Neutral RSI and negative MACD reinforce bearish bias, suggesting consolidation with weakness.
💡 Entry Zone: Optimal entry around ₹10,200–10,600 (near support).
🚪 Exit Zone: Resistance seen at ₹11,167 (50 DMA) and ₹13,379 (200 DMA). Profit booking advised near these levels.
🔎 Trend Status: The stock is currently consolidating with bearish bias. A breakout above ₹11,167 would indicate recovery momentum.
Positive
- EPS of ₹159 supports earnings visibility.
- Large market cap (₹65,219 Cr) adds credibility.
- Quarterly PAT growth (₹187 Cr vs ₹479 Cr) shows operational resilience despite sequential decline.
- DII holding increased (+0.13%), reflecting domestic institutional support.
Limitation
- Extremely high P/E (87.3) compared to industry average (36.0) suggests severe overvaluation.
- Weak ROCE (11.7%) and ROE (8.71%) compared to peers.
- Trading below both 50 DMA and 200 DMA highlights weak technical strength.
- PEG ratio (75.2) reflects expensive valuation relative to growth.
Company Negative News
- Decline in FII holding (-2.01%) shows reduced foreign investor confidence.
- Sequential PAT decline (₹187 Cr vs ₹479 Cr) indicates margin pressure.
Company Positive News
- DII holding increased (+0.13%), showing domestic institutional support.
- Quarterly profit variation (+7,383% YoY) highlights strong growth momentum.
Industry
- Industry P/E at 36.0 is much lower than DIXON’s P/E, suggesting peers are more attractively valued.
- Electronics manufacturing services sector remains strong, supported by rising demand in consumer electronics and government initiatives for local production.
Conclusion
⚖️ DIXON shows strong growth momentum and sector relevance but faces valuation concerns and weak efficiency metrics. Short-term consolidation with bearish bias is evident. Entry near ₹10,200–10,600 offers margin of safety, while exits should be considered near ₹11,167–13,379. Long-term investors should be cautious given high valuations, while traders may wait for confirmation above 50 DMA before aggressive buying.
Would you like me to extend this into a peer benchmarking overlay (e.g., comparing DIXON with Amber Enterprises, Syrma SGS, and Kaynes Technology) to highlight relative strength and sector rotation opportunities?