DIXON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| 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 |
📊 DIXON is trading above its 50 DMA (10,921 ₹) but below the 200 DMA (12,742 ₹), indicating short-term strength but medium-term weakness. RSI at 55.4 suggests healthy momentum, while MACD at 204 confirms bullish divergence. Current volume (4,84,216) is below average (7,45,195), showing reduced participation. Bollinger Bands place price mid-range, pointing to consolidation with mild bullish bias.
🎯 Entry Zone: 11,100 ₹ – 11,200 ₹ (support near 50 DMA)
💰 Exit Zone: 11,500 ₹ – 11,700 ₹ (resistance band)
🔄 Trend Status: Consolidating with mild bullish bias; reversal requires sustained breakout above 200 DMA.
Positive
- EPS of 159 ₹ supports valuation strength.
- Price trading above 50 DMA confirms short-term bullish bias.
- Quarterly PAT recovery (187 Cr vs 479 Cr) highlights resilience.
- Strong MACD divergence supports momentum.
Limitation
- Extremely high P/E (90.9) compared to industry PE (45.1) suggests stretched valuation.
- Weak ROE (8.71%) and ROCE (11.7%) highlight efficiency concerns.
- PEG ratio (78.3) reflects poor growth-adjusted valuation.
- Trading below 200 DMA indicates medium-term weakness.
- Volume below average reduces conviction in breakout potential.
Company Negative News
- Decline in FII holdings (-0.38%) and DII holdings (-0.92%) signals reduced institutional confidence.
- Sequential PAT decline raises concerns about earnings consistency.
Company Positive News
- Quarterly profit variation (+7,383%) highlights strong rebound.
- EPS strength supports valuation despite volatility.
Industry
- Industry PE at 45.1 is much lower than DIXON’s 90.9, suggesting relative overvaluation.
- Electronics manufacturing sector benefits from long-term demand but faces cyclical margin pressures.
Conclusion
⚖️ DIXON is consolidating with mild bullish bias, supported by short-term technicals but constrained by stretched valuations and weak efficiency metrics. Entry near 11,100–11,200 ₹ with exits around 11,500–11,700 ₹ is favorable for swing trades. Long-term investors should be cautious due to high P/E and poor growth-adjusted valuation despite strong EPS and MACD momentum.
This is the short-term technical trade view. I can also prepare a sector overlay benchmarking DIXON against other electronics manufacturing peers to refine entry/exit strategies for your workflow reports.