Dixon Technologies is India’s largest multinational electronic manufacturing service company. They are currently manufacturing televisions, washing machines, smartphones, Led bulbs, CCTV’s, battens.
Company’s for which dixon is manufacturing products are Samsung, Xiaomi, Panasonic and Philips.
- Share holding pattern
- Returns given by Dixon technologies over years
- Reasons behind success of Dixon technologies
One of the most highlighting stock whose Earning Per Share ( EPS) is maintaining a growth of 24% in past 3 years.
Dixon is now one of the most questionable stock in industry because they are going to split.
People areconfused, now what ? Should we buy or not?
Let me tell the straight facts right now : Dixon current scenario and ratios.
- Market Capitalisation : INR 22,771 Cr
- Enterprise Value : INR 22,750 Cr
- No of Shares : 1.17 Cr.
- P/E : 165.22 ( Too high, Share is on high demand )
- P/B : 40.29
- Face Value : INR 10
- Div. Yield : 0.02%
- Cash : 97.69 Cr.
- Debt : 76.03 Cr.
- Promoter holding :35.06%
- EPS : INR 117
- Sales Growth : 45.36%
- ROE : 25.50 %
- ROCE : 33.27%
- Profit growth : 3.01%
If we have a look towards the graph of price of share to years, we can see share is having tremendous growth which is giving investors hefty benefits.
Here is the P/E Ratio of Dixon Technologies over past few years. As we know their are multiple reasons why a stock’s P/E is increasing tremendously.
It can be a positive point or a negative point. Here… Let’s check it out.
Profit growth of dixon is showing 96% growth which is extremely high and which clearly defines the high P/E of dixon.
Company is doing huge profit in less time which is definately increasing P/E ratio by big numbers.
2. Share holding pattern
Now we will study the share holding pattern in company.
FII’s are constantly increasing their investment in the company where as mutual funds have reduced it a bit.
Other domestic institutional investors are also increasing their investments in company. This data shows 1/3rd of company’s equity is with institutions.
Majority of the share holding is with promoters that is around 35%. There is no pledging in the company. Around 201 FII’s have invested in the company.
3. Returns given by Dixon technologies over years
Now we are going to see how much percentage returns stock is giving in past few days, months, and span of year.
This is unbelievable and just look at the statistics. On 8th Feb, 2021 dixon closed at a height of ~17,450.
4. Reasons behind success of Dixon technologies
If you believe in Modi ji ( Prime minister of India ) and you really believe in Make in India campaign, development and bright future of India?
Dixon technologies is biggest multinational manufacturers of electronic gadjets in India.
This is company’s December Quarter results. You can check the net sales figures, operating profit, consolidated net profit and operating profit marketing of the company.
Change of 119% in net sales of 2019 and 2020. Almost double the amount of sales company used to do in 2019.
As we discussed above, P/E is high due to high growth of the company.
All the other ratios are working perfectly fine in the company. Company is already showing such kind of amazing growth.
Now it’s your decision to invest or to wait and watch.
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