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Should you subscribe for Dixon Technologies IPO? - IndiaNotes.com
Should you subscribe for Dixon Technologies IPO?
SMC | Published: 05 Sep, 2017  | Source : IndiaNotes.com
Valuation

Considering the P/E valuation on the upper end of the price band of Rs. 1766, the stock is  priced at  pre  issue  P/E of  38.51x  on  its  FY17  EPS of  Rs. 45.86.  Post issue,  the  stock  is  priced  at  a  P/E of  39.70  x  on  its   EPS  of  Rs.  44.48.  Looking  at  the  P/B  ratio  at  Rs.  1766  the  stock  is  priced  at  P/B  ratio  of   9.81x  on  the  pre  issue  book  value  of  Rs.180 and  on  the  post  issue  book  value  of  Rs. 227.58   the  P/B  comes  out  to  7.76x.
       
On the lower end of the price band of Rs.1760 the stock is priced at pre issue P/E of 38.38x on its  FY17 EPS of Rs. 45.86.Post issue, the stock is priced at a P/E of 39.57x on its EPS of Rs. 44.48. Looking at the P/B ratio at Rs. 1760, the stock is priced at P/B ratio of   9.78x on the pre issue book  value  of  Rs.  180  and  on  the  post  issue  book  value  of  Rs.  227.58  ,  the  P/B  comes  out  to  7.73x.
   

Outlook:

The  company  is  a  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.  The Company has shown  strong  financial  performance over the  past five  years.  Its  debtequity ratio  is  much lower .  With the  increasing  demand for  electronic appliances due to  changing  modern lifestyle  and  high  consumer  spending,  it  is  expected  that  company  would see  good  growth  in  long  run.  As  the  issue  looks  expensive,  a  long  term  investor  may  opt  the  issue.   Read full report Click here to read the full report


About SMC
SMC Research, founded in 1990, is India’s leading share and stock broker, provides a wide range of financial services and investment solutions. A blend of extensive experience, diverse talent and client focus has made us the 4th largest broking house in India(Source: Dun and Bradstreet, 2008). Over the years, SMC has expanded its operations domestically as well as internationally. Existing network includes regional offices at Mumbai, Kolkata, Chennai, Cochin, Ahmedabad, Jaipur, Hyderabad, Bangalore plus a growing network of 2100+ offices spread across 425 cities/towns in India.


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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.