Dixon Technologies (India) Ltd.
Consumer Goods · NSE
52-week range
₹9,600 – ₹18,471
From 52w high
-41.5%
RSI (14)
46.7
vs SMA 50 / 200
↑ 50 · ↓ 200
Dixon Technologies (DIXON) is an electronics manufacturing services company trading at ₹10,803, down 32.7% over the past 12 months and 41.5% below its 52-week high. The stock sits 21.3% below its 200-day moving average with a trailing PE of 39.4 and a net profit margin of 3.25% on a debt-to-equity ratio of 29.7. Over 5 years, earnings have grown at 47.6% CAGR though margins remain structurally thin for an EMS business.
- ✓5-year earnings CAGR of 47.6% is well above typical Consumer Goods sector peers, reflecting rapid revenue scaling in electronics manufacturing services.
- ✓Consistency score of 83 in the persistence model, with ROE above 15% in 4 of the tracked years, suggests earnings quality has been durable over the medium term.
- ✓DIXON trades at a trailing PE of 39.4, which is the lowest among 6 sector peers benchmarked (peer range: 64.9 to 96.0), representing a relative valuation discount within its Consumer Goods peer group.
- ✓JV with Vivo and potential Mobile PLI 2.0 policy tailwinds, reported in April 2026 coverage, represent incremental revenue diversification opportunities in the EMS segment.
- ✗Stock has been below its 200-day moving average (₹13,729) since the price fell from its 52-week high, and is down 32.7% over 12 months, indicating sustained selling pressure over a prolonged period.
- ✗Debt-to-equity of 29.7 is substantially elevated relative to the Consumer Goods sector; FCF was positive in only 2 of the available persistence years, raising questions about capital generation capacity relative to leverage.
- ✗Net profit margin of 3.25% is structurally thin; forward PE of 56.8 implies the market expects a meaningful earnings acceleration — any shortfall in margin expansion could compress the earnings multiple further.
- ✗Promoter stake reduction in March 2026 quarter, as reported by The Economic Times, alongside cost pressure and demand headwinds flagged in trade press, adds near-term operational uncertainty.
- ·Motilal Oswal Financial Services (MOFSL) flagged near-term margin pressure for DIXON in April 2026 while noting a potential upside scenario over a longer horizon, per Business Standard reporting.
- ·Government discussions around a Mobile PLI 2.0 scheme, reported by NDTV Profit in April 2026, could expand addressable contracts for EMS players; Dixon is among the names cited in that context.
- ·Promoter selling in DIXON was highlighted in a broader Economic Times report covering 13 midcap stocks where promoters reduced stakes during the March 2026 quarter.
- ?Does the 47.6% 5-year earnings CAGR reflect a structural shift in India's electronics manufacturing capacity, or is it primarily driven by one-time PLI incentives that may taper?
- ?How does a debt-to-equity of 29.7 affect DIXON's ability to fund new manufacturing capacity or JV commitments if FCF generation remains inconsistent?
- ?The forward PE of 56.8 versus trailing PE of 39.4 implies a significant margin or revenue re-rating: what assumptions about margin trajectory or revenue mix underpin that gap?
- ?Given that promoters reduced their stake in the March 2026 quarter, what disclosures or management commentary explain the timing and scale of that reduction?
PE
39.4
Forward PE
56.8
ROE
—
Profit margin
+3.3%
D/E
29.66
Dividend yield
+0.1%
Quality score
37/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
2/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.