Dixon Technologies Q1 Review - Growth Levers Intact: Dolat Capital
BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
Dixon Technologies Ltd.'s Q1 sales, Ebitda and profit after tax all grew 3.6 times, 2.8 times and 11 times YoY respectively given the weak base of last year.
Margins dropped to 2.6%, below its average range at 3.8% due to gross margin pressures as well as adverse operating leverage in Q1, which we believe should normalise in future quarters.
Dixon Technologies is among the best play on production linked incentive in India.
Besides mobiles, it has plans to utilise PLI for IT, telecom, air conditioners and LEDs.
It has multiple tailwinds with its increase in capacity, backward integration capability and new client additions.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint 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 BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.