Check Before You Invest : Dixon Technologies (India) Ltd

Snapshot

Q.1 Which industry/sub-sector does Dixon Technologies (India) Ltd belong to?

Dixon Technologies (India) Ltd belongs to the Consumer Durables sector, operating specifically within the Consumer Durables - Electronics segment.

Q.2 Is Dixon Technologies (India) Ltd a good quality company?

Dixon Technologies (India) Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Dixon Technologies (India) Ltd undervalued or overvalued?

Dixon Technologies (India) Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Dixon Technologies (India) Ltd a good buy now?

Dixon Technologies (India) Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Dixon Technologies (India) Ltd?

Dixon Technologies (India) Ltd revenue growth is -15.8% for FY-2025, which is below its 5-year CAGR of 8.03%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Dixon Technologies (India) Ltd?

Dixon Technologies (India) Ltd Return on capital employed is 38.02% for FY-2025, which is above its 5-year historical median of 26.86%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Dixon Technologies (India) Ltd?

Dixon Technologies (India) Ltd Return on Asset is 17.93%, which is above its 5-year historical median of 7.74%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Dixon Technologies (India) Ltd?

Dixon Technologies (India) Ltd Return on equity is 32.77% for FY-2025, which is above its 5-year historical median of 20.49%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Dixon Technologies (India) Ltd?

Dixon Technologies (India) Ltd Cash conversion cycle is 12 days, above its 5-year historical median of 5 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.71	2.57
ROE	32.77	20.49
ROCE	38.02	26.86
Cash Conversion Cycle	12 days	5 days

Q.6 Gross Profit margin of Dixon Technologies (India) Ltd?

Dixon Technologies (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.8% for FY-2025, which is in line with its 5-year median of 4.8%, indicating stable margins.

Q.7 Operating Profit Margin of Dixon Technologies (India) Ltd?

Dixon Technologies (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.59% for FY-2025, which is in line with its 5-year median of 4.83% indicating stable margins.

Q.8 Net Profit Margin of Dixon Technologies (India) Ltd?

Dixon Technologies (India) Ltd Net Profit Margin is 10.48% for FY-2025, is above with its 5-year median of 2.9%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	4.8	4.8
Operating Profit Margin	4.59	4.83
Net Profit Margin	10.48	2.9

Q.9 Debt to Equity ratio of Dixon Technologies (India) Ltd?

Dixon Technologies (India) Ltd Debt-to-Equity ratio is 0.09, which is in line with the industry average of 0.09, indicating similar to debt levels in the industry.

Q.10 Debt to cash flow from operations of Dixon Technologies (India) Ltd?

Dixon Technologies (India) Ltd Debt to cash flow from operations is 0.63, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Dixon Technologies (India) Ltd?

Promoters hold 28.68% of the Dixon Technologies (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Dixon Technologies (India) Ltd vs industry peers?

Dixon Technologies (India) Ltd revenue CAGR is 8.03%, compared to the industry median CAGR of 8.61%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-15.8	8.6
Gross Profit Growth	-16.4	6.1
Operating Profit Growth	-21.8	4.3
Net Profit Growth	204.3	21

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.71	1.94
ROE	32.77	23.92
ROCE	38.02	32.15
Cash Conversion Cycle (days)	12.14	9

Valuation & price assessment

Q.1 Stock return of Dixon Technologies (India) Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 23.29% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	23.3%	57.4%	-30%

Q.3 Valuation ratios of Dixon Technologies (India) Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	71.54	155.47	45.77
Price to Book	22.68	31.25	3.45
Price to Sales	16.53	4.62	1.16
EV to EBITDA	68.35	90.40	19.84

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