DIXON technologies ltd

**Dixon Technologies Ltd – Comprehensive Fundamental and Technical Analysis**

**Company Overview:**
Dixon Technologies Ltd is a leading Indian electronics manufacturing services (EMS) company, specializing in the design, development, and manufacturing of products across various sectors, including consumer electronics, home appliances, lighting, and mobile phones. Established in 1993 and headquartered in Noida, the company has established itself as a key player in India's electronics manufacturing industry.

**Recent Financial Performance:**
- **Revenue:** For the fiscal year ending March 31, 2024, Dixon Technologies reported a total revenue of ₹3,322.6 crore.
- **Net Profit:** The company achieved a net profit of ₹324.5 crore in the same period.

- **Earnings Per Share (EPS):** The EPS for the year was ₹45.5. citeturn0search3
- **Gross Margin:** The gross margin stood at 15.7%, indicating the percentage of revenue retained after incurring the direct costs associated with producing the goods sold.

- **Net Profit Margin:** The net profit margin was 9.8%, reflecting the company's ability to convert revenue into actual profit.

**Key Financial Metrics:**
- **Market Capitalization:** As of February 14, 2025, Dixon Technologies' market capitalization is approximately ₹85,298 crore, classifying it as a large-cap company.
- **Price-to-Earnings (P/E) Ratio:** The P/E ratio is 102.68, indicating a premium valuation compared to industry peers.
- **Price-to-Book (P/B) Ratio:** The P/B ratio is 38.3, suggesting a high valuation relative to its book value.
- **Debt-to-Equity Ratio:** The debt-to-equity ratio is 0.47, indicating a moderate level of debt financing relative to equity.

**Stock Performance:**
- **Current Stock Price:** As of February 14, 2025, the stock price is ₹14,199.50.

- **52-Week Range:** The stock has traded between ₹6,410.00 and ₹19,148.90 over the past year, indicating significant volatility.
- **Recent Performance:** Over the past year, the stock has shown a return of 28.7%.

**Analyst Insights:**
ICICI Direct initiated coverage on Dixon Technologies with a "BUY" rating and a target price of ₹4,470, valuing the company at 50x P/E on FY24E EPS.

**Investment Considerations:**
- **Strengths:**
- **Market Leadership:** Dixon Technologies holds a significant share in India's EMS sector, benefiting from the country's growing demand for electronic products.
- **Diversified Portfolio:** The company's extensive product range across various sectors provides a balanced revenue stream.
- **Risks:**
- **Valuation Concerns:** The high P/E and P/B ratios suggest that the stock is trading at a premium, which may pose risks if growth expectations are not met.
- **Market Volatility:** The stock has exhibited significant price fluctuations, which may pose risks for investors.

**Conclusion:**
Dixon Technologies Ltd demonstrates robust financial performance and holds a strong position in India's EMS market. While the stock's premium valuation and volatility warrant cautious consideration, the company's growth prospects and market leadership make it a noteworthy entity in the electronics manufacturing sector.

**Investment Strategy:**
- **Short-Term Traders:** Consider entering near support levels around ₹13,500, with a target price of ₹15,000. Maintain a stop-loss below ₹12,000 to manage downside risk.

- **Long-Term Investors:** The stock's current valuation and growth prospects make it a potential candidate for long-term investment, with a target price of ₹16,213. Regularly assess the company's performance and market conditions to make informed decisions.

*Note: This analysis is for informational purposes only and should not be construed as financial advice. Investors are encouraged to conduct their own research or consult with a financial advisor before making investment decisions.*