Sharekhan has given Buy recommendation for Dixon Technologies with a target price of Rs. 18700 in its research report issued on Feb 02, 2021

Sharekhan’s research report on Dixon Technologies

Strong performance during Q3FY21 led by strong beat in revenues along with stable margins leading to strong PAT beat. It continued to add new clients and scale up wallet share from existing clients. Macro tailwinds and sharp rise in new business volumes, scaling-up of mobile vertical with approval of PLI scheme and capacity expansions brightens core business’ growth outlook. Capacity expansion in LED TVs, batons, down lighters, and washing machines on track. Upbeat on increasing overall ODM share as the mobile vertical achieves scale.

Outlook

We retain a Buy rating on Dixon Technologies with a revised PT of Rs. 18700 considering its strong net earnings growth outlook for FY2021E-FY2023E and its strong compounding structural growth story.

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