Dixon Technologies (India) Ltd., incorporated in the year 1993, is a Mid Cap company (having a market cap of Rs 10919.20 Crore) operating in Consumer Durables sector.
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Promoters held 36.1 per cent stake in the company as of June 30, 2020 while FIIs held 12.3 per cent, DIIs 21.9 per cent and public and others 29.7 per cent.
DART has given buy rating to Dixon Technologies with a target price of Rs 10,700. The share price moved down by 0.99 per cent from its previous close of Rs 9553.50. The stock’s last traded price is Rs 9458.75.
Dixon Technologies (India) Ltd., incorporated in the year 1993, is a Mid Cap company (having a market cap of Rs 10919.20 Crore) operating in Consumer Durables sector.
Financials For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 516.94 Crore, down 39.71 % from last quarter Sales of Rs 857.41 Crore and down 54.93 % from last year same quarter Sales of Rs 1146.92 Crore. The Company reported net profit after tax of Rs 1.60 Crore in latest quarter.
Investment Rationale The brokerage had downgraded the stock in Q1 purely on valuations based on earlier numbers devoid of PLI. It has incorporated the PLI numbers in the estimates and while it has maintain earlier multiple of 40x, valuing it close to a PEG of 1x given the 43% earnings CAGR over FY20- 23, it has rolled forward to Sep-22 which gives a new target price of Rs10700, and upgrade the stock to Buy. Apart from PLI, Dixon has multiple growth across customers and product segments-all of which does not captured in near term earnings. Strong customers’ addition; diversification and fungibility of manufacturing are Dixon’s strengths.
Promoter/FII Holdings Promoters held 36.1 per cent stake in the company as of June 30, 2020 while FIIs held 12.3 per cent, DIIs 21.9 per cent and public and others 29.7 per cent.
