NSEI:DIXON

Stock Analysis Report

Dixon Technologies (India)

Executive Summary

Dixon Technologies (India) Limited manufactures and sells products for the consumer durables, lighting, and mobile phones markets in India.

Rewards

Earnings are forecast to grow 27.32% per year

Earnings grew by 79.5% over the past year

Risk Analysis

High level of non-cash earnings

Highly volatile share price over past 3 months

Significant insider selling over the past 3 months



Snowflake Analysis

High growth potential with solid track record.

Share Price & News

How has Dixon Technologies (India)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DIXON's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.3%

DIXON

-2.3%

IN Consumer Durables

-0.4%

IN Market


1 Year Return

107.7%

DIXON

34.8%

IN Consumer Durables

11.1%

IN Market

Return vs Industry: DIXON exceeded the Indian Consumer Durables industry which returned 34.8% over the past year.

Return vs Market: DIXON exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

DIXONIndustryMarket
7 Day-2.3%-2.3%-0.4%
30 Day7.8%6.5%-1.2%
90 Day34.2%11.3%3.3%
1 Year107.9%107.7%35.7%34.8%13.0%11.1%
3 Yearn/a49.1%46.8%25.3%18.6%
5 Yearn/a97.3%92.6%35.4%23.1%

Price Volatility Vs. Market

How volatile is Dixon Technologies (India)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dixon Technologies (India) undervalued compared to its fair value and its price relative to the market?

46.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DIXON (₹4489.7) is trading above our estimate of fair value (₹1877.42)

Significantly Below Fair Value: DIXON is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DIXON is poor value based on its PE Ratio (46.6x) compared to the Consumer Durables industry average (22.9x).

PE vs Market: DIXON is poor value based on its PE Ratio (46.6x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: DIXON is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: DIXON is overvalued based on its PB Ratio (11.4x) compared to the IN Consumer Durables industry average (1.4x).


Next Steps

Future Growth

How is Dixon Technologies (India) forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

27.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DIXON's forecast earnings growth (27.3% per year) is above the savings rate (6.5%).

Earnings vs Market: DIXON's earnings (27.3% per year) are forecast to grow faster than the Indian market (20.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DIXON's revenue (18.9% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: DIXON's revenue (18.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DIXON's Return on Equity is forecast to be high in 3 years time (25.7%)


Next Steps

Past Performance

How has Dixon Technologies (India) performed over the past 5 years?

27.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DIXON has a high level of non-cash earnings.

Growing Profit Margin: DIXON's current net profit margins (2.5%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: DIXON's earnings have grown significantly by 27.2% per year over the past 5 years.

Accelerating Growth: DIXON's earnings growth over the past year (79.5%) exceeds its 5-year average (27.2% per year).

Earnings vs Industry: DIXON earnings growth over the past year (79.5%) exceeded the Consumer Durables industry 13.9%.


Return on Equity

High ROE: DIXON's Return on Equity (24.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dixon Technologies (India)'s financial position?


Financial Position Analysis

Short Term Liabilities: DIXON's short term assets (₹15.4B) exceed its short term liabilities (₹14.1B).

Long Term Liabilities: DIXON's short term assets (₹15.4B) exceed its long term liabilities (₹1.0B).


Debt to Equity History and Analysis

Debt Level: DIXON's debt to equity ratio (28.6%) is considered satisfactory.

Reducing Debt: DIXON's debt to equity ratio has reduced from 92.3% to 28.6% over the past 5 years.

Debt Coverage: DIXON's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: DIXON's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet

Inventory Level: DIXON has a high level of physical assets or inventory.

Debt Coverage by Assets: DIXON's debt is covered by short term assets (assets are 12.1x debt).


Next Steps

Dividend

What is Dixon Technologies (India)'s current dividend yield, its reliability and sustainability?

0.044%

Current Dividend Yield


Dividend Yield vs Market

company0.04%marketbottom25%0.6%markettop25%2.5%industryaverage0.4%forecastin3Years0.2%

Current dividend yield vs market & industry

Notable Dividend: DIXON's dividend (0.044%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: DIXON's dividend (0.044%) is low compared to the top 25% of dividend payers in the Indian market (2.51%).


Stability and Growth of Payments

Stable Dividend: DIXON is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: DIXON is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: DIXON is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DIXON's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Atul Lall (57yo)

4.6yrs

Tenure

₹27,636,000

Compensation

Mr. Atul B. Lall has been Managing Director of Dixon Technologies (India) Private Limited since July 5, 2015 and has been its and Director since June 30, 2000. Mr. Lall has over 25 years experience in the  ...


CEO Compensation Analysis

Compensation vs Market: Atul's total compensation ($USD386.44K) is about average for companies of similar size in the Indian market ($USD397.73K).

Compensation vs Earnings: Atul's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sunil Vachani
Executive Chairman0yrs₹33.92m1.63% 846.4m
Atul Lall
MD & Director4.6yrs₹27.64m4.03% 2.1b
Saurabh Gupta
Chief Financial Officer1.8yrs₹8.07m0.18% 92.0m
Ashish Kumar
Group Company Secretary & Compliance Officer2.9yrs₹4.65m0.035% 18.0m
Pankaj Sharma
President & COO of Mobile Division0.8yrsno data0.14% 72.2m
Vineet Mishra
President & COO of Lighting0yrsno data0.054% 28.2m
Rajeev Lonial
President & COO of Washing Machine4.5yrsno data0.081% 41.9m
Abhijit Kotnis
President & COO of LED Television Division0yrsno data0.049% 25.6m
Vinay Pradhan
Vice President of Human Resources3.3yrsno data0.0095% 4.9m
Sitaram Patel
Vice-President of Reverse Logistics4.8yrsno datano data

3.3yrs

Average Tenure

50yo

Average Age

Experienced Management: DIXON's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sunil Vachani
Executive Chairman0yrs₹33.92m1.63% 846.4m
Atul Lall
MD & Director4.6yrs₹27.64m4.03% 2.1b
Poornima Shenoy
Non-Executive Independent Director3yrs₹670.00kno data
Manoj Maheshwari
Non-Executive Independent Director2.8yrs₹720.00kno data
Manuji Zarabi
Non-Executive Independent Director3yrs₹790.00kno data
Keng Kuo
Additional Non-Executive Independent Director0.8yrsno datano data

3.0yrs

Average Tenure

55.5yo

Average Age

Experienced Board: DIXON's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DIXON insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Dixon Technologies (India) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dixon Technologies (India) Limited
  • Ticker: DIXON
  • Exchange: NSEI
  • Founded: 1993
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Market Cap: ₹51.917b
  • Shares outstanding: 11.57m
  • Website: https://www.dixoninfo.com

Number of Employees


Location

  • Dixon Technologies (India) Limited
  • B 14 & 15
  • Phase-II
  • Noida
  • Uttar Pradesh
  • 201305
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DIXONNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2017
540699BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2017

Biography

Dixon Technologies (India) Limited manufactures and sells products for the consumer durables, lighting, and mobile phones markets in India. It offers consumer electronics, including LED TVs; home appliances, such as washing machines; lighting products, comprising LED bulbs, tube lights, down lighters, CFL bulbs, and CFL drivers; mobile phones; and security surveillance systems. The company also provides solutions in reverse logistics, such as repair and refurbishment services of set top boxes; mobile phones; LCD and LED TVs; LED panels; home theatres; and computer peripherals and other devices, such as printers, CCTVs, and speakers. The company was incorporated in 1993 and is headquartered in Noida, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 13:04
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.