Dixon Technologies Q1 Review - Mobiles Drove Strong Quarter; IT, Hardware, The Next Big Driver: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Dixon Technologies India Ltd.’s 1Q revenue/Ebitda/profit after tax surged 101%/88%/108% YoY, driven by mobile and EMS segments (revenue Rs 51.9 billion, up 189% YoY and 68% QoQ). Working capital cycle remained negative (-7 days). Robust outlook of FY25 is led by mobiles. Approval for Ismartu acquisition is expected in 10 days; thus, ~8 months of consolidation will be effective in FY25. Ismartu, in FY24, clocked Rs 82 billion revenue, Rs 3.5 billion Ebitda and Rs 2.4 billion PAT. Onboarding of a large global brand is also under process. IT and hardware products have $10 billion addressable market and Dixon aspires to see similar success as in Mobile. Supply to Acer (laptop) and Lenovo (notebook) has already started. It has recently added two new customers and is in the process to onboard a large global brand. A large campus in Chennai (Rs 500 million capex) will likely be operational in Q1 FY26. Dixon will continue to explore high growth segments having healthy return on capital employed. We maintain earnings estimates and estimate 47%/45%/58% CAGR in revenue/Ebitda/PAT over FY24-26E. New customer additions across key verticals, strong traction in mobiles and fast ramp up in new segments (telecom hardware, laptops, refrigerators, washing machine) will drive this growth. On robust outlook and ~28%/51% RoE/RoIC in FY26E, we maintain Hold with an unchanged target price of Rs 12,483 (80 times FY26E price/earning). Key risk: Demand slowdown in key user segments,Loss in key customer’s market share..Click on the attachment to read the full report:.Dixon Technologies Q1 Results: Profit, Revenue Jump More Than Twofold.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dixon Technologies Q1 Review - Mobiles Drove Strong Quarter; IT, Hardware, The Next Big Driver: Systematix

The company will continue to explore high growth segments having healthy RoCE, believes the brokerage and maintain earnings estimates and estimate 47%/45%/58% CAGR in revenue/Ebitda/PAT over FY24-26E.

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Dixon Technologies Q1 Review - Mobiles Drove Strong Quarter; IT, Hardware, The Next Big Driver: Systematix

The company will continue to explore high growth segments having healthy RoCE, believes the brokerage and maintain earnings estimates and estimate 47%/45%/58% CAGR in revenue/Ebitda/PAT over FY24-26E.

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