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📈 Dixon Technologies: Long-Term Investor Report (FY26–FY35)

Lesson 224/225 | Study Time: 15 Min

Course: Top Quality Companies

📈 Dixon Technologies: Long-Term Investor Report (FY26–FY35)

🔍 India’s EMS Champion | Growth, Valuation & Buy Zones | Updated: 29th July 2025

Dixon: Fairvalue
https://docs.google.com/spreadsheets/d/e/2PACX-1vQpVV63Uy0-GYUEMgNcCnOxs8fS9Q_p4SAdAJz8_G0NAmQUKUEq2vR-HJDC2r2slRCNRHtfEeQ4ci32/pubhtml?gid=1894880893&single=true

🏢 Company Overview

Dixon Technologies (India) Ltd is one of India’s largest homegrown electronics manufacturing service (EMS) providers. With strong ties to global brands and deep presence in mobile phones, LED TVs, lighting, and appliances, Dixon is riding the megatrend of domestic manufacturing under the "Make in India" initiative.

Founded in 1993, the company has transformed from a contract manufacturer to a technology partner and solution provider.

🌐 Industry Snapshot: Indian EMS Sector

The Indian EMS industry is projected to grow at a 30–35% CAGR driven by:

Rising global outsourcing (China+1 strategy)
Strong domestic demand
Government incentives like PLI schemes

India is expected to become a global hub for electronic manufacturing by 2030, and Dixon stands as a key beneficiary.

📊 Historical Sales & Profit Growth

Year	Sales (₹ Cr)	Profit (₹ Cr)
FY2012	572	-7
FY2015	1,201	12
FY2020	4,400	120
FY2023	12,192	255
FY2025	38,860	843
T12M FY26	45,116	983

📈 Growth Highlight: Sales have grown ~39X and profits ~140X in 12 years — a clear sign of long-term wealth creation potential.

💹 Profit Margin Movement

Despite scale, margins have remained relatively low but stable around 2.1–2.5%, with improving cost control.

Year	Margin %
FY2013	0.7%
FY2016	3.1%
FY2021	2.5%
FY2024	2.1%
FY26E	2.2%

🚀 Growth Trends & FY26 Forecast

Metric	H1 FY25	9M FY25	FY25 Est	Q1 FY26	FY26 Est
Sales Growth	120%	119%	120%	95%	50%
Profit Growth	204%	176%	125%	100%	52%
Profit Margin	3.00%	2.70%	3.20%	2.20%	2.20%

🔍 Q1 FY26 Performance Highlights

Metric	Q1 FY26	Q1 FY25	Growth
Sales	₹12,836 Cr	₹6,580 Cr	95%
Profit	₹280 Cr	₹140 Cr	100%
EPS	₹46.5	₹23.35	99%
ICR	12x	7x	Stronger

🧩 Segment-Wise Revenue – Q1 FY26

Segment	Revenue (₹ Cr)	YoY Growth	Share (%)
Mobile	11,663	125%	91%
LED TV	672	-21%	5%
Home Appliance	313	3%	2%
Lighting	188	-17%	1%

📌 Mobile remains the growth engine, contributing to over 90% of topline.

📉 Historical Valuation Ranges

PE Valuation (Past Years)

Year	High PE	Low PE
FY2021	156	30
FY2023	109	60
FY2025	136	50
T12M	104	74

PBV Valuation (Past Years)

Year	High PBV	Low PBV
FY2021	35	7
FY2024	27	10
FY2025	38	14
T12M	31	22

📌 Valuations are compressing slightly but still premium, supported by strong earnings momentum.

🧠 Technical View: Long-Term Chart Analysis

🔹 Historical Returns: Dixon has delivered 28X returns in 7 years
🔹 Target Zone: ₹23,147 in 2 Years
🔹 Attractive Buying Zone: ₹13,413 – ₹8,546
🔹 Current Price: ₹16,784 (CMP)

This range-based strategy offers long-term investors a calculated entry framework.

📅 Long-Term Estimates

Year	Sales (₹ Cr)	Profit (₹ Cr)	EPS	Margin %
FY2026E	38,690	623	100	2.2%
FY2030E	6,767	1,232	197	2.1%
FY2035E	13,610	2,478	397	2.1%

💰 Valuation-Based Price Range

Year	EPS	Book Value	Fair Value (PE)	PB Fair Value
FY26E	214	₹705	₹18613	₹14803
FY30E	507	₹1462	₹44147	₹127168
FY35E	1263	₹2940	₹109851	₹255780

📦 Portfolio Allocation Guidance

Metric	Weightage
EPS Based Weight	1.41%
Book Value Based	1.20%
PEG Based Weight	1.27%
Actual Portfolio Weight	1.29%

📌 Suitable for high-growth allocation in a diversified long-term portfolio.

⚠️ Risk-Reward Summary

✅ Rewards:

Strong growth runway in Indian EMS
Proven execution with marquee clients
Operating leverage visible in margin trends

⚠️ Risks:

Dependence on single segments (Mobile >90%)
Margin dilution risk due to input costs
Premium valuation leaves little room for error

✅ Final Thoughts

Dixon represents a Make-in-India growth compounder. At premium valuations, long-term investors may consider accumulation in buying zones, focusing on FY30–FY35 wealth creation.

📢 Disclosure

This blog is for educational and informational purposes only. It is not investment advice or a recommendation. Investors must perform their own due diligence before making investment decisions.

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