Dixon Technologies (India) Ltd

Dixon Technologies (India) Limited, incorporated in 1993 , is a Electronic Manufacturing Services (EMS) company with operations in the electronic products vertical such as consumer electronics, lighting, home appliance, closed-circuit television cameras (CCTVs), and mobile phones. It also undertakes reverse logistics operations. Besides, it manufactures security surveillance equipment, wearables & audibles, AC-PCBs. Recently, it has entered a JV with Imagine Marketing Private Limited for designing and manufacturing wireless audio solutions in India.

Key Business

Consumer Electronics – 25%

Lighting Products – 12%

Home Appliances – 7%

Mobile & EMS – 60%

Security Systems – 3%

Shareholding Pattern

-PUBLIC GROUP

-PROMOTER GROUP

Financial Summary

Synopsis of Financials

• Consolidated revenues for Q3 grew by 100% year-on-year
• EBITDA increased by 64% year-on-year
• PAT grew by 87% year-on-year
• Return on capital employed and equity at 35.6% and 25.6% respectively

Final Outlook

Dixon Technologies’ future fundamental analysis suggests that the company is expected to see significant revenue growth in the coming fiscal year. This growth is expected to be driven by expansion in mobile and EMS segments, and growth in local electronics manufacturing.

Key Insights

• Dixon Technologies is one of the largest LED TV manufacturers in India.
• The company has a healthy ROCE of 23.85% over the past 3 years.
• The company has a good cash flow management.
• The company has shown a poor profit growth of 6.90% for the Past 3 years.
• The company has shown a poor revenue growth of 4.15% for the Past 3 years.
• The company is expected to more than double its revenue this fiscal year.
• The company has reported a 117% growth in its mobile segment.
• The company has a target price set at ₹19,000.
• The company has expanded talent pool internationally.
• The company has benefited from PLI Scheme Incentive.

I would give Buy recommendation for this stock