Markets are going through a correction phase with almost all the sectorial indices slipping in red except Nifty FMCG and Nifty Realty.Dixon Technologies after giving a breakout from its key resistance levels is trading with gains of more than 4 per cent on intraday basis. Dixon technologies along with Vaibhav Global and Titan is helping the BSE Consumer Durables index to recover on a down market day. Vaibhav Global is the top BSE Consumer Durable index gainer on Monday morning trading session.
Dixon Technologies is a high growth company that displayed a five year sales growth (CAGR) of 29.6 per cent, EBITDA has grown by 48.1 per cent (CAGR) in past five years while PAT growth for the past five years has been 58.7 per cent (CAGR). The stock is trading at fresh life highs on back of strong momentum in stock price and strong financials. The PE for the stock is 171 at current levels and the growth stock looks little expensive at current levels.
Dixon Technologies is the largest home grown design-focused and solutions company engaged in contract manufacturing products in the consumer durables, lighting and mobile phones market in India. The company is fully integrated end-to-end product and solution suite to Original Equipment Manufacturers (OEMs) ranging from global sourcing, manufacturing, quality testing and packaging to logistics. It is also a leading Original Design Manufacturer (ODM) of lighting products, LED TVs and semi-automatic washing machines in India.The company’s top 2 customers contribute ~49% of the revenues (as of H1 FY21), while from the profitability front, the top customer accounts for ~15% of the operating profits.
Dixon has inched up by 68.88 per cent on YTD basis while the stock is up by 314 per cent in one year. In past one month the stock has gained 16.45 per cent. In 2021 the stock has given positive returns in Jan, Feb, April and now in June months.