Dixon Technologies (India) Ltd.
NSE: DIXONDixon Technologies (India) Ltd.: A 30-second snapshot
Dixon Technologies (DIXON) is an Electronics Manufacturing Services (EMS) company trading at ₹11,103, approximately 39.9% below its 52-week high and 30.9% lower year-on-year. PE of 40.7 is the lowest among its six Consumer Goods sector peers, while ROE of 37.13% is among the highest in the peer set. Debt-to-equity of 18.46 and a profit margin of 2.94% reflect the capital-intensive, thin-margin structure typical of contract manufacturing at scale.
P/E
40.7
Forward P/E
42.9
ROE
+37.1%
Debt / Equity
18.46
Profit Margin
+2.9%
Div. Yield
+0.1%
5Y ROE > 15%
4/5
5Y FCF > 0
2/5
Quality
48/100
News
8 headlines · 3 positive · 1 negative
Results: Dixon Technologies (India) Limited Beat Earnings Expectations And Analysts Now Have New Forecasts - simplywall.st
simplywall.st
Dixon Tech share price target cut 33% by UBS but 'buy' maintained on 'priced-in' risks - CNBC TV18
CNBC TV18
Dixon Technologies: Can the EMS Stock Capture a Larger Market Share After Its JV with Vivo? - Trade Brains
Trade Brains
Why Dixon Technologies shares may rally up to 30% - Explained by brokerages - Business Today
Business Today
Dixon Tech stock: MOFSL sees 30% upside, flags near-term margin pressure - Business Standard
Business Standard
Recent context
- ·Q4 FY26 results beat earnings expectations per SimplyWallSt reporting (May 2026), and multiple brokers including MOFSL flagged near-term margin pressure while noting longer-term EMS volume potential.
- ·UBS revised its price target downward by approximately 33% in April 2026, citing risks it described as priced in, and retained its constructive rating — a named broker action reflecting the tension between compressed valuation and near-term execution risk.
- ·Dixon entered a joint venture with Vivo (April 2026 reporting), a development analysts and media are monitoring as a potential lever for incremental EMS market share in the smartphone segment.
Strengths
- +ROE of 37.13% has been above 15% in 4 of the available persistence years and matches Titan — the highest ROE in the peer group alongside DIXON — indicating capital deployment efficiency relative to most sector peers.
- +PE of 40.7 (trailing) is the lowest of 6 Consumer Goods peers tracked, with sector peers ranging from 64.9 (Asian Paints) to 95.6 (DMart), placing DIXON at a relative valuation discount on this metric.
- +Fundamental consistency score of 83 signals that key financial metrics have been relatively stable over the measurement period despite the thin-margin EMS business model.
- +Mean analyst rating of 2.27 across 29 analysts (1–5 scale, lower = more constructive), with named brokers UBS (maintained its constructive rating post price-target revision), MOFSL, and multiple others flagging near-term headwinds while retaining constructive stances.
Weaknesses
- −Debt-to-equity of 18.46 is the primary structural risk: for a non-financial consumer-sector company with 2.94% net margins, this level of leverage leaves limited room for revenue shortfalls or interest-rate increases.
- −FCF was positive in only 2 of the available persistence years, confirming that growth has been predominantly funded externally rather than through operating cash generation.
- −5-year earnings growth of -36.1% against 5-year revenue growth of 2.1% indicates that margins have compressed materially over the medium term, not expanded, which is the opposite of what an EMS scale story typically promises.
- −Quality score of 16 ranks DIXON 6th of 6 Consumer Goods peers — the weakest composite quality in the comparison set — driven by leverage and FCF characteristics rather than ROE alone.
Open questions
- ?Does DIXON's 18.46 debt-to-equity reflect a business model that structurally requires high working-capital financing, or does it indicate balance-sheet stress that could constrain future capacity investment?
- ?The 5-year earnings CAGR of -36.1% alongside a consistency score of 83 and 4 years of ROE above 15% appears contradictory — what specific year or event drove the earnings base that produces this negative 5-year figure?
- ?EMS margins globally are thin (1–4%), and DIXON operates at 2.94% — at what revenue scale or product-mix shift would margin expansion become structurally achievable, and what are the historical precedents among comparable EMS peers?
- ?Given the 39.9% drawdown from the 52-week high and the Vivo JV announcement, what execution milestones over the next 2–4 quarters would confirm or challenge the bull case for earnings recovery?
Peer comparison: Consumer Goods
Ranks 6 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| DIXON | Dixon Technologies (India) Ltd.You're viewing | 40.7 | +37.1% | 16 |
| Industry avg | across 5 peers | 79.6 | +19.6% | 37 |
| TRENT | Trent Ltd. | 84.8 | +27.1% | 49 |
| ETERNAL | Eternal Ltd. | — | +1.2% | 41 |
| DMART | Avenue Supermarts Ltd. | 95.6 | +12.9% | 37 |
| TITAN | Titan Company Ltd. | 73.1 | +37.1% | 34 |
| ASIANPAINT | Asian Paints Ltd. | 64.9 | — | 23 |
Technical state
Current price
₹11,103.00
SMA 50
₹10,652.62
SMA 200
₹13,622.49
RSI (14)
52.7 (neutral)
From 52w high
-39.9%
1Y return
-30.9%
3M return
-4.4%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 18.46 is materially elevated for a consumer electronics contract manufacturer; FCF was positive in only 2 of the available persistence years, indicating capital intensity is outpacing internally generated cash.
- highStock is 18.5% below its 200-day moving average (₹11,103 vs SMA-200 at ₹13,622), down 30.9% over 12 months, and 39.9% off its 52-week high — sustained multi-month technical deterioration.
- medium5-year earnings growth is reported at -36.1% while 5-year revenue growth is only 2.1%; profit margin stands at 2.94%, leaving minimal buffer for cost or competitive pressure. Forward PE of 42.9 vs trailing PE of 40.7 implies market is pricing incremental earnings expansion not yet visible in margins.
- mediumQuality score of 16 ranks DIXON 6th of 6 peers in the Consumer Goods sector, the lowest in the comparison set, despite its top PE ranking (lowest multiple at 40.7 vs sector range up to 95.6).
Cross-section contradictions
- ROE of 37.13% matches Titan exactly and is above TRENT (27.13%) and DMART (12.94%) — a strong return-on-equity print — yet the quality score of 16 ranks DIXON last among 6 peers, suggesting the quality composite captures dimensions (margin, FCF, leverage) where DIXON is weaker than its ROE implies.
- 5-year earnings growth of -36.1% alongside ROE persistence of 4 years above 15% and a consistency score of 83 is internally inconsistent — either the 5-year earnings CAGR reflects a high base year or a reclassification event, rather than structural deterioration.
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.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days