Dixon Technologies (India) Ltd Multibagger 2021 Analysis

In this article we can explore the possibility of Indian Energy Exchange ( IEX) as a Multibagger 2021 Stock based on Value Investing principles.

Website  www.dixoninfo.com
CMPRS.  5102.00

About Dixon Technologies ( India ) lTD

Dixon Technologies (India) Limited has been leading the electronic manufacturing services (EMS) space in India. Founded in 1993 and commenced manufacturing of colour television in 1994, Dixon has now expanded its operations to various sub-segments of electronics.

As a home grown manufacturing company, Dixon Technologies provides manufacturing and design focused solutions in consumer durables, home appliances, lighting, mobile phones, security devices, set top boxes, wearables and medical equipment to customers across the globe, along with repairing and refurbishment services of LED TV panels.

Dixon Technologies (India) Ltd is an Indian electronics manufacturing services company, based in Noida. It is a contract manufacturer of televisions, washing machines, smartphones, LED bulbs, battens, downlighters and CCTV security systems for companies such as Samsung, Xiaomi, Panasonic and Philips. It has 10 manufacturing units in Noida, Dehradun and Tirupati, as well as the largest television, washing machine and bulb assembly plants in India. The company is listed on BSE and NSE since its initial public offering in 2017.

Dixon Technologies was founded in 1993 by Sunil Vachani. His father Sundar Vachani had been manufacturing televisions under the Weston brand which had launched the first colour television in India; his business struggled later on due to the emergence of other companies.[10] Dixon initially manufactured 14-inch televisions, Sega video game consoles, Philips video recorders and push-button phones for Bharti Airtel. A major breakthrough came in the 2000s when the company won a Government contract to manufacture televisions.[11] Apart from televisions and video recorders, the company also started to manufacture air conditioners and microwave ovens for LG Electronics, as well as DVD players for other brands.

In 2018, Dixon signed a deal with Xiaomi to manufacture LED television sets at its Tirupati plant.

In January 2020, Dixon entered a partnership with Samsung for local production of LED televisions.[13] In December 2020, it was reported that Dixon’s subsidiary Padget Electronics would manufacture smartphones for Motorola.[14] In January 2021, Dixon announced that it would manufacture wireless speakers for the Indian company boat Lifestyle.[15] Later that month, Padget Electronics signed a contract with HMD Global to manufacture Nokia smartphones at its Noida plant.

Dixon Technologies (India) Ltd Multibagger 2021 Analysis

Products

  • Consumer Electronics
  • Home Appliances
  • Lighting Solution
  • Mobile phones
  • Security surveillance system
  • Reverse Logistics
  • Medical Electronics
  • Set Top Box

Services

  • Research & Development
  • Sourcing
  • Designing
  • Manufacture & Assemble
  • Testing

Profit & Loss

Dixon Technologies (India) Ltd Multibagger 2021 Analysis

Warren Buffet, Value & Growth Checklist

Capitalization30000 Crore (Largecap)
Sales Increasing past 3 YearsYes, 30%bce05 green e1587451073732
Profit Increasing past 3 Years Yes, 25% bce05 green e1587451073732
Durable Competitive Advantage Yes bce05 green e1587451073732
PE Ratio1622d260 red
PB Ratio30X2d260 red
Debt Equity Ratio0.35 (moderately high)
Intrinsic Value Discount0% bce05 green e1587451073732
Promoter Holding & Increase34%, Decreased -4% [they might be liquidating over-valued price] bce05 green e1587451073732
Multibagger Returns100-200% 5 Year
[Still the Euphoria can make Uprun in Price – but be careful that there could be sharp corrections too as it is overvalued]

Positives

  • Company have 30% Sales & Profit Growth
  • Company have High Reputation & Returning Clients
  • Company have Order Book filled till 2025
  • Company is expected to give good quarter
  • Company have High ROCE of 32% and ROE of 25%
  • CAGR 25% recorded in past 5 years

Negatives

  • Stock is very much over-valued – High PE, PB
  • Stock have NO Intrinsic Value Discount
  • Stock have Debt burden started
  • Stock have Very Low Profit Margin
  • Promoters are Decreasing Holdings
  • Promoter holding has decreased over last 3 years: -4.00%

Summary

As per the Value Investing grounds the company have NO Multibagger Potential at current price.

DISCLAIMER

Company name, Logos are Copyright of respective owners. The advice or opinions here is not for public distribution and has been furnished to you solely for your information purpose and must not be reproduced or redistributed to any other person.  Any report is created from Public Source of Information available through Internet from Company website & Other websites & the Research Analyst does not guarantee the Validation of Content in this report

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