Dixon Technologies (India) Ltd. share price target

We have rolled forward our estimates to FY24 valuing Dixon at 50x FY24 E EPS of Rs 90 arriving at a target price of Rs 4,500 which gives an upside of 10% from CMP. Maintain BUY.

We tweak our revenue, PAT estimate downward by 6%, ~13%, respectively, for FY22E considering the impact of lockdown in Q1FY22. However, a strong balance sheet, increased backward integration and increasing share of Dixon in domestic electronic manufacturing are expected to result in strong PAT CAGR of 87% in FY21-23E. We reiterate our BUY recommendation on...

We maintain BUY and value Dixon at 45x FY23E EPS of Rs 347 arriving at target price of Rs 15,636 a premium to consensus PE of 37x FY23E EPS.

We have introduced FY23 estimates and roll forward our valuation at 36X FY23E EPSof Rs 312 arriving at target price of Rs 11,214. We have changed the stance to BUY vs. Hold earlier.

Strong beat on operational performance as OPM rise on a y-o-y basis for almost all verticals. Overall, average capacity utilisation at 75%-80% for Q2. Gearing up on scaling mobile vertical with approval of PLI scheme. Talks at final stages with three large customers in addition to the current anchor brand. Capacity expansion in LED TVs, batons, down lighters, and washing machines on track. Upbeat on increasing overall ODM share as the mobile vertical achieves scale. Dixon Technologies (Dixon) reported strong beat on Q2FY2021 results. Consolidated revenue for Q2 grew by 16.9% y-o-y to Rs. 1,639 crore, led by 29.6% y-o-y rise in consumer electronics...

DIXON Technologies (DIXON), India's largest EMS player is currently in a sweet spot given a confluence of rising demand,importsubstitution andfavorableregulatorysupportatthesame time.Thecompanyispreparingforaggressivescaleupacrossproductsegmentsbyinvestingin increasing management bandwidth, adding export markets as a key growth engine and continuouslyincreasingthevalue additioninproductslikelighting,washingmachinesandnow televisions. Fungible capacities, backward integration, focus on ODM solutions vs OEM and continuedadditionofMNCclientshavebeenkeygrowthenablersbehinddrivinga30%revenue and 56% PAT growth over FY1520. Further, an assetlight balance sheet, low WC cycle,...

The domestic manufacturing story is leading the path for Dixon and it sits comfortably with a diversified product mix, client mix and fungible manufacturing facilities which can be adjusted to make use of any unutilized capacity. It has been successful in backward integration, improving operational efficiencies and design capabilities to continue on its growth trajectory. It continues to transition from the OEM model to ODM model of doing business, which should improve its margins going forward. The PLI scheme is another opportunity for Dixon, which can...