Dixon Technologies - Q4 FY21 Result Update - YES Securities

(Rating: ADD, TP: Rs4,335, Upside: 8.5%)

- Dixon technologies delivered a mixed performance with in- line revenues and miss on EBITDA. EBITDA miss was primarily on account of increase in commodity prices, change in business mix and Rs80mn additional ESOP charges.

- All segments except reverse logistics registered strong growth with Consumer electronics and Mobile phones registering growth of 2x and 3.8x respectively. Lighting products/Home Appliances/Security systems grew 49.8%/62.7%/99.8% respectively

- Expect FY21-23E Revenue/EBITDA/PAT to grow 67%/66%/78% and arrive at PT of Rs4,335 valuing it at 50x FY23 EPS vs 40x earlier as company is entering new business and is pursuing 4 other PLI's apart from Mobile PLI that it has already got. We continue with ADD rating as current valuations leaves limited upside potential.

Shares of Dixon Technologies (India) Ltd was last trading in BSE at Rs.3995.7 as compared to the previous close of Rs. 3993.5. The total number of shares traded during the day was 58975 in over 12290 trades.

The stock hit an intraday high of Rs. 4100 and intraday low of 3764.65. The net turnover during the day was Rs. 235226678.

Source : Equity Bulls

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