8 DIXON share price target reports by brokerages below. See what is analyst's view on DIXON share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
Dixon’s Consolidated Revenue grew by 25% in Q23Y20 to Rs. 993.8 cr vs. Rs. 794 cr in Q3FY19, driven by strong revenue growth across key segments. The EBITDA grew by 32% to Rs 52 cr vs. Rs 39 cr in Q3FY19, while EBIDA margins stood at 5.2% (26 bps Y-o-Y and 69 bps Q-o-Q) due to soft RM prices and operating leverage. The consol PAT grew 49% Y-o-Y to Rs 26.3 cr vs. Rs 17.6 cr aided by lower tax rate (at 26% vs. 35% earlier). Dixon continues to focus on new client acquisition and product addition to increase its top-line, backward integration, increasing ODM revenues and improving capacity utilization has aided overall improvement in EBITDA margins. Dixon is expanding capacities across segments based on strong order book from existing and new customers. Higher capacity utilization, new customer additions and increased product offerings are expected to drive revenue and profit growth going forward. Maintain a BUY rating with rolled over TP of Rs 5,116 (33x FY22E EPS of Rs 155). Given the sharp run-up in the price of the stock in the recent past, we would advise to buy in staggered manner.
Dixon had reported highest ever quarterly sales in 1QFY20 at Rs11.5bn. The management expects strong growth traction to continue, driven by Consumer Electronics and Lighting segments. Achieving scale, migration to ODM, new customer acquisition and backward integration are key focus areas for Dixon to drive growth. To enhance capacities, it has outlined FY20E capex of Rs600mn-Rs650mn. We roll forward our valuation to September 2021E earnings and maintain Buy rating on Dixon with a revised target price of Rs3,000 (Rs2,925 earlier) based on P/E of 28x.
Achieving scale, migration to ODM, new customer acquisition and backward integration are key focus areas for Dixon which will drive growth. To enhance capacities, it has outlined FY20E capex of Rs600mn-Rs650mn. The cash conversion cycle reduced from 7 days in FY19 to negative 3 days in 1QFY20, leading to healthy cash flow of Rs300mn. We have tweaked our estimates and retain Buy rating on the stock with a revised target price of Rs2,925 (from Rs3,090 earlier) based on 30x FY21E earnings.
With a clear focus on achieving scale, migration to ODM, new customer acquisition and backward integration, Dixon is aiming for 25%-30% revenue growth in FY20 along with commensurate improvement in the margin profile. FY19 capex stood at Rs680mn while FY20E capex outlay is Rs600mn-Rs650mn (excluding Rs300mn capex earmarked for top-load washing machine). We have cut our earnings estimates for FY20/FY21 by 11%/10%, respectively. We have retained Buy rating on the stock with a revised target price of Rs3,090 (from Rs3,190 earlier) based on 30x FY21E earnings.
Over FY18-FY21E, we expect Dixon to register revenue/earnings CAGR of 14%/28%, respectively. Robust growth prospects, healthy return ratios, lean working capital cycle and high fixed-asset turnover will sustain Dixon’s healthy financial position and support its valuation.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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