AngelOne has recommended Dixon Technologies (India) Ltd as one of its top Diwali picks for 2024, setting a target price of ₹19,070. Currently trading at ₹15,402, Dixon offers an upside potential of 24%. As a leading Electronic Manufacturing Services (EMS) company in India, Dixon is involved in manufacturing a variety of electronic products, ranging from consumer electronics to security surveillance equipment.
Quick Overview of Key Financials
| Parameter | Value |
|---|---|
| Current Market Price (CMP) | ₹15,402 |
| Target Price | ₹19,070 |
| Upside Potential | 24% |
| Market Cap | ₹92,159 crore |
| Beta | 1.4 |
| Sector | Consumer Durables |
Key Investment Highlights for Dixon Technologies (India) Ltd
- Diverse Product Portfolio in EMS
Dixon Technologies manufactures a wide range of electronic products, including consumer electronics, lighting, home appliances, CCTV cameras, mobile phones, security surveillance equipment, and more. The company’s extensive product mix positions it as a key player in India’s EMS market. - Impressive Financial Growth in Q1FY25
Dixon Technologies reported a substantial 101.1% year-on-year revenue growth in Q1FY25, reaching ₹6,580 crore. Net profit also increased by 108.9% YoY to ₹140 crore, underscoring the company’s operational efficiency and strong market demand. - Strategic Joint Venture with Imagine Marketing Pvt Ltd
Dixon recently entered into a joint venture with Imagine Marketing Private Limited for designing and manufacturing wireless audio solutions in India. This partnership expands Dixon’s footprint in the audio segment, catering to the growing demand for tech-driven consumer electronics. - Expanding Market Opportunity
With a large young and tech-savvy population, India presents a significant market opportunity for electronic products. Dixon is actively expanding its manufacturing capacity and product offerings to capture this potential, leveraging its diversified portfolio and market expertise.
Key Financials Overview
| Year | Sales (₹ Cr) | PAT (₹ Cr) | EPS (₹) | OPM (%) | ROE (%) | P/E (x) | P/BV (x) | EV/Sales (x) |
|---|---|---|---|---|---|---|---|---|
| FY2024 | 17,691 | 375 | 61 | 4.2 | 21.6 | 121.6 | 26.4 | 4.9 |
| FY2023 | 12,192 | 255 | 43 | 4.3 | 19.8 | 66.6 | 13.2 | 6.6 |
| FY2022 | 10,697 | 190 | 32 | 3.6 | 19.1 | 134.5 | 25.6 | 7.7 |
Dixon Technologies’ strong growth trajectory, diversified product range, and recent joint venture make it a compelling choice in India’s fast-growing EMS market. With a target price of ₹19,070 and a 24% upside, AngelOne’s recommendation reflects Dixon’s robust potential for growth in the Indian consumer durables sector.
Disclaimer: This article is based on AngelOne’s research and is intended for informational purposes only. Investors are encouraged to consult a financial advisor and refer to the detailed research report before making any investment decisions.
News desk at BusinessUpturn.com