Hold Dixon Technologies (India), target price Rs 4080: Emkay Global

Emkay Global has hold call on Dixon Technologies (India) with a target price of Rs 4080. The current market price of Dixon Technologies (India) Ltd. is Rs 3885. Time period given by analyst is one year when Dixon Technologies (India) Ltd. price can reach defined target.

Dixon Technologies (India) Ltd., incorporated in the year 1993, is a Mid Cap company (having a market cap of Rs 23074.22 Crore) operating in Consumer Durables sector.

Dixon Technologies (India) Ltd. key Products/Revenue Segments include Domestic Appliances, Job Work, Rent, Service Charges, Export Incentives for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 2954.57 Crore, down -3.88 % from last quarter Total Income of Rs 3073.92 Crore and up 39.98 % from last year same quarter Total Income of Rs 2110.69 Crore. Company reported net profit after tax of Rs 63.19 Crore in latest quarter.

Investment Rationale
The brokerage cuts FY23-24E revenue due to the weak show of Lighting and lower TV realizations; it also cuts EBITDA by 6-10%, owing to the delay in margin recovery in ODM. Maintain Hold with a revised TP of Rs4,080 (41x Jun’24E EPS vs. 45x earlier on higher CoE

Promoter/FII Holdings
Promoters held 34.3 per cent stake in the company as of 31-Mar-2022, while FIIs owned 16.39 per cent, DIIs 7.97 per cent.