Dixon Technologies (Dixon) is engaged in manufacturing of consumer durable products, lights and mobile phones in India. It offers fully integrated end-to-end product and solution suite to the OEMs.
Outlook & Valuation
At a price band of Rs1,760-1,766, the Issue is valued at PE of 39.6x FY17EPS at upper price band. As Dixon enjoys a dominant position in consumer electronic outsourcing business, we believe that the Company would continue to deliver higher revenue and profit given the strong growth potential across business verticals. Its revenue, EBITDA and PAT has witnessed 33.8%, 44.4% and 78.3% CAGR, respectively through FY13-FY17. Despite a lower margin profile, Dixon continues to maintain higher return ratios due to its asset light model. Thus, we recommend SUBSCRIBE to the Issue from long-term perspective.
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About Reliance Securities
Reliance Securities, the broking arm of Reliance Capital, is one of the India’s leading retail broking houses, providing customers with access to equities, derivatives, currency, IPOs, mutual funds, bonds, and corporate FDs amongst others. The large array of financial offerings helps customers fulfilling their investment objectives on one platform. Focus on timely & error-free execution represents its core strength. Their best in class research offerings, high degree of compliance with stock exchange regulations, ethical business standards, & strong risk management capabilities; Reliance Securities positions itself amongst strong & innovative brands in the financial services space.
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