Edelweiss Securities has given Buy recommendation for Dixon with a target price of Rs. 5700 in its research report issued on Dec 06, 2021
Edelweiss Securities’ report on Dixon
We recently interacted with Mr Sunil Vachani, Executive Chairman at Dixon. Highlights: i) Penetration and imports substitution in categories wherein Dixon has presence offer huge growth potential, and Dixon aspires to be a top five global player in EMS by revenue and capability. ii) Management remains confident of attracting global/local partners that prioritise players with solid execution track record, cost edge, etc. Dixon’s sustainable returns-centric scale ambition reinforces confidence w.r.t. opportunity basket.
Automation, migration to ODM (especially mobile phone), and a downstream component ecosystem are critical to its long-term revenue and competitive edge. Retain ‘BUY’.