Multibagger turned Stocks in a span of Year

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The share increases to Rs 4,198 this 1st June for the year 2021, having a 315 percent gain for this period. Previous year shares for the month of June were Rs. 1,010.71.

More than 300 percent of Dixon Technologies shares have delivered returns to its shareholders in the past 12 months. In comparison to its shares, Sensex rose 56 percent in one year.

A year back, Rs 5 lakh invested in Dixon Technologies share would have turned into Rs 20.76 lakh today.

Since the beginning of this year, the stock has gained 53.5 percent.

The share stands higher than 5-day, 10-day, 20-day, 50-day, 100-day, and 200-day moving averages.

The stocks opened 0.72 percent higher at Rs 4,059.00 against the previous close of Rs 4,029.75 on BSE.
The market cap of the firm rose to Rs 24,194.71 crore on BSE.

For the FY2021, operations revenue grew by 47 percent to Rs 6,448.17 crore from Rs 4,400.12 crore in the previous year. The net profit closes at Rs 159.8 crore against Rs 120.50 crore in the previous year.
A 60 percent rise in its consolidated net profit to Rs 44.26 crore for the quarter ended by March 31, 2021, reports Company. The previous year’s profit was at Rs 27.58 crore.

Revenue grew from 146 percent to Rs 2,109.71 crore in the March-ended quarter against Rs 857.41 crore a year back.

The consumer electronics segment contributed 56 percent of the company’s total revenue, followed by lightning products accounting for 18 percent, and the home appliances and mobile division contributed 7 percent and 14 percent, respectively.

According to ICICI Direct, entry of new product categories and customer additions into existing product categories (especially in washing machines, LED lights & mobile phones) would help drive revenue at a CAGR of 63% in FY21-23E.

ICICI Direct said, “We tweak our revenue, PAT estimate downward by 6%, 13%, respectively, for FY22E considering the impact of lockdown in Q1FY22. However, a strong balance sheet increased backward integration and increasing share of Dixon in domestic electronic manufacturing is expected to result in strong PAT CAGR of 87% in FY21-23E”.

“We reiterate our ‘BUY’ recommendation on the stock with a revised target price of Rs 4,635 (earlier Rs 4,270), ” the brokerage firm added.

“We incorporate revenues accruing from the PLI schemes and Refrigerator category into our estimates,” the brokerage house added

Emkay Global Financial has a ‘Buy’ rating with a revised target price of Rs 4,500 (45x Sep’23E EPS). LED monitor manufacturing plans to participate in the RAC PLI adds to further growth.