Dixon Technologies (India) Limited

Technology — Consumer Electronics · NSE

₹12,340.00−₹326.00 (−2.57%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

The 60-second version of Dixon Technologies (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Dixon Technologies (India) Limited, together with its subsidiaries, engages in the manufacture and sale of electronic goods in India and internationally.

IndustryConsumer Electronics

SectorTechnology

Employees1,319

Annual revenue₹48,537 Cr

How does it make money?

Turns over ₹48,537 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 1,319 employees supports ₹36.80 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹36.80 Cr

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 34.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 30.8% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

What is the outlook?

27 analysts covering the stock expect revenue to grow about 35.6% and earnings to grow about 58.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+35.6%

Est. earnings growth+58.6%

Analysts27

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +299% while net margin moved +41% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+299%

Margin effect+41%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 36.1x already prices in growth
✓ P/E is 74% below its own historical median of 140.3x — cheap by its own standards
✗ P/B of 13.75x is a steep premium to book

Quality vs. Valuation

Company Quality

70/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

64/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

36.1x

3Y Median

140.3x

40 monthly readings · mean 152.8x · range 52.4x–292.7x

Sector Median

68.5x

median of 3 sector peers

🟢Current valuation is approximately 74% below its 3y median of 140.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 47% below the peer median of 68.5x.

vs. its own history

Cheap

140.3x median over 40 months · -74%

vs. sector peers

Cheap

68.5x median of 3 peers · -47%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

39.9x

PEG

0.46

What's Good / What's Bad

🟢 What's Going Well6

Cash generation is improving
Free cash flow is up 170% over 3 years.
Return on equity is rising
ROE has improved from 19.9% to 30.8%.
Return on capital is rising
ROCE has improved from 23.1% to 34.1%.
High return on capital employed
ROCE of 34.1% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.18x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 119% over 3 years, from ₹453 Cr to ₹994 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 34.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 74% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 47% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹715 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 44% a year✓ 58.6% CAGR
Latest reported year was 21.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 3.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹715 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 31%✓ 34.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹75,485 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

36.1x

Fair

Fairly valued against the generic band

P/B Ratio

13.75x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹342.03

Profitable

Profitable on a per-share basis

ROE

30.8%

Strong

Strong capital efficiency

ROCE

34.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

21.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

154.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.08%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹715 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

44.3x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

2.3%

Weak

Thin margins leave little room for error

Net Margin

3.6%

Average

Average bottom-line conversion

Current Ratio

1.06

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.12

Defensive

Steadier than the market

52W Range Position

37%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

12972.8 / 13704.8

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

31.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹12,173 Cr	₹17,614 Cr	₹38,593 Cr	₹48,537 Cr	+58.6%
EBITDA	₹516 Cr	₹721 Cr	₹1,524 Cr	₹1,893 Cr	+54.2%
EBITDA Margin	4.2%	4.1%	3.9%	3.9%	—
PAT (Net Profit)	₹256 Cr	₹368 Cr	₹1,096 Cr	₹1,439 Cr	+77.9%
EPS	₹42.69	₹61.27	₹180.06	₹235.67	+76.7%
ROE	19.9%	21.7%	36.4%	30.8%	—
ROCE	23.1%	25.0%	41.1%	34.1%	—
Total Debt	₹453 Cr	₹489 Cr	₹671 Cr	₹994 Cr	+29.9%
Free Cash Flow	₹265 Cr	-₹0 Cr	₹210 Cr	₹715 Cr	+39.3%

🟢 Revenue has grown at 58.6% a year over 3 years.

🟢 EBITDA has grown at 54.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 3.9% over 3 years.

🟢 PAT (Net Profit) has grown at 77.9% a year over 3 years.

🟢 EPS has grown at 76.7% a year over 3 years.

🟢 ROE has risen from 19.9% to 30.8% over 3 years (+10.9 pts).

🟢 ROCE has risen from 23.1% to 34.1% over 3 years (+11.0 pts).

🔴 Total Debt has grown at 29.9% a year over 3 years.

🟢 Free Cash Flow has grown at 39.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹19,162 Cr

Total Liabilities

₹13,775 Cr

Cash & Equivalents

₹870 Cr

Operating Cash Flow

₹1,782 Cr

Capex

-₹1,068 Cr

Shareholding (proxy)

Institutional Holding

35.2%

Insider Holding

40.1%

Corporate Actions

Next Earnings

22 Oct 2026

Dividend Rate

₹10

Ex-Dividend Date

21 Sept 2026

Analyst Consensus

Recommendations

20 Buy · 3 Hold · 4 Sell

Target Price (Mean)

₹14,876.59

+20.6% vs CMP

Target Range

₹8,817 – ₹17,800

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

4 mixed2 general

Dixon Technologies Share Price falls 2.56%: fundamentals

Univest, 16 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Why Dixon Technologies (India) Bears Were Right Before The Drop

Yahoo Finance, 15 Oct

Dixon Technologies and Gemtek Form Optical Transceiver JV for Future Growth

scanx.trade, 18 OctPartnership

🟡Mixed / dependsA partnership, whose value depends entirely on terms that a headline will not carry. Worth reading the filing before assuming either way.

Dixon Tech shares could gain up to 25% on global EMS opportunity: JPMorgan - CNBC TV18

LinkedIn, 23 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Dixon Tech shares could gain up to 25% on global EMS opportunity: JPMorgan

CNBC TV18, 23 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Dixon Technologies stock slips 29% from 52-week high; tracking price targets, recovery prospects

Business Today, 23 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability

MiddlingBusiness Quality · Valuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑