Stock Market

Rs 1,011 to Rs 4,198: This stock turned into a multibagger in one year

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multibagger
  • The share stood at Rs 1,010.71 on June 01, 2020. it's zoomed to Rs 4,198.00 today, translating into gains of 315 percent during the amount

Share of Dixon Technologies (multibagger) has delivered quite 300 percent returns to its shareholders within the last 12 months. The share stood at Rs 1,010.71 on June 01, 2020. it’s zoomed to Rs 4,198.00 today, translating into gains of 315 percent during the amountas compared, Sensex rose 56 percent in one year.

Rs 5 lakh invested in Dixon Technologies share a year ago would have become Rs 20.76 lakh today.

The stock has gained 53.5 percent since the start of this year and become multibagger in one year. It opened 0.72 percent higher at Rs 4,059.00 against the previous close of Rs 4,029.75 on BSE.

The share stands above 5 days, 10 days, 20 days, 50 days, 100 days, and 200-day moving averages. The market cap of the firm rose to Rs 24,194.71 crore on BSE.

For the financial year 2021, revenue from operations grew 47 percent to Rs 6,448.17 crore from Rs 4,400.12 crore within the previous year. net income stood at Rs 159.8 crore against Rs 120.50 crore within the previous year.

The company reported a 60 percent rise in its consolidated net income to Rs 44.26 crore for the quarter ended March 31, 2021. Profit within the year-ago period stood at Rs 27.58 crore.

Revenue from operations grew 146 percent to Rs 2,109.71 crore within the March-ended quarter against Rs 857.41 crore a year ago.

The consumer electronics segment contributed 56 percent of the company’s total revenue, followed by lightning products which accounted for 18 percent, and therefore the home appliances and mobile division which contributed 7 percent and 14 percent, respectively.

ICICI Direct believes entry into new product categories and customer additions into existing product categories (especially in washing machines, LED lights & mobile phones) would help drive revenue at a CAGR of 63% in FY21-23E.

The company has outlined a CAPEX of Rs 200 crore in FY22 for a brownfield expansion in TVs, washing machines, mobile phones and to start out a replacement manufacturing unit for direct cool refrigerators.

“We tweak our revenue, PAT estimate downward by 6%, 13%, respectively, for FY22E considering the impact of lockdown in Q1FY22. However, a robust record, increased backward integration, and increasing share of Dixon in domestic electronic manufacturing is expected to end in strong PAT CAGR of 87% in FY21-23E,” said ICICI Direct.

“We reiterate our ‘BUY’ recommendation on the stock with a revised target price of Rs 4,635 (earlier Rs 4,270), ” the brokerage added.

Emkay Global Financial features a ‘Buy’ rating with a revised target price of Rs 4,500 (45x Sep’23E EPS). It mentioned that LED monitor manufacturing and plans to participate within the RAC PLI adds to current growth levers.

“We incorporate revenues accruing from the PLI schemes and Refrigerator category into our estimates,” the brokerage added.

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