{"id":1794,"date":"2021-03-30T12:56:53","date_gmt":"2021-03-30T12:56:53","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=1794"},"modified":"2021-03-31T03:20:12","modified_gmt":"2021-03-31T03:20:12","slug":"maintaining-fy22-guidance-of-topline-of-over-rs-100-bn-dixon-technologies","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2021\/03\/30\/maintaining-fy22-guidance-of-topline-of-over-rs-100-bn-dixon-technologies\/","title":{"rendered":"Maintaining FY22 guidance of topline of over Rs 100 bn &#8211; Dixon Technologies"},"content":{"rendered":"<p><b>Update\u00a0on the Indian Equity Market:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">On Tuesday, NIFTY closed at 14,844 (+2.3%). Top gainers in NIFTY50 were UPL (+7.6%), JSW Steel (+4.9%), and Shree Cement (+4.9%). The top losers were Hindalco (-0.3%), Axis Bank (-0.2%), and M&amp;M (-0.1%). The top sectoral gainers were IT (+2.9%), METAL (+2.8%), and PHARMA (+2.7%), and the only sectoral loser was REALTY (-0.03%).<br \/>\n<\/span><span style=\"text-decoration: underline;\"><strong>Excerpts of an interview with Mr. Atul Lall, MD, Dixon Technologies (DIXON)\u00a0with CNBC -TV18 dated 26th March 2021<\/strong><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">He estimates FY21 revenue to be around Rs 62-63 bn, which is a decent growth over last year\u2019s revenue of almost Rs 44 bn. They will also have growth in profitability.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This is despite Q1 being a complete washout because of the pandemic. In FY22, they are targeting very aggressive growth.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">He had previously mentioned a revenue estimate of Rs 100 bn plus in FY22 and a significant increase in the bottom line as well. They still stand by the same; possibility they will do even better.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">He expects the EBITDA margins to remain in the range of 4.4-4.5 percent going ahead on the back of the product mix. He is also expecting a 25-30 percent CAGR run-rate in topline post FY22.<\/span><\/li>\n<li aria-level=\"1\">He expects Capex to be ~2,500-2,600 mn in FY22 and he expects FY22 to be a solid growth year for the company.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">He said that commodity price rise is impacting the consumer durable companies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They have two kinds of revenue streams. One is an OEM revenue stream wherein they work on a prescriptive basis. All price increases on the commodity side, they have been able to pass on to their principle because that is the way the contracts are drafted.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">He also said that for FY21, Dixon Technologies has met the eligibility criteria on investment and revenue threshold for handset manufacturing PLI. However, they have not yet heard from the government.<\/span><\/li>\n<\/ul>\n<p><b>Asset Multiplier comments:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The COVID-19 pandemic has left a lasting impact across all walks of life, and the electronics industry is no exception as it has also suffered a decline in growth. This is a temporary phase \u2013 especially for consumer electronics and appliances \u2013 as some of these devices have grown to be an integral part of our lives.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The electronics industry is basically divided into two categories\u2014industrial electronics and consumer electronics. The latter has witnessed more growth than the former due to its popularity among consumers and because of more foreign direct investment in it.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The industrial electronics segment in India is still facing challenges because of various taxation policies and the lack of an ecosystem for manufacturing components.<\/span><\/li>\n<\/ul>\n<p><b>Consensus Estimate: (Source: market screener and investing.com websites)<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The closing price of DIXON was\u00a0\u20b9\u00a03,635\/- as of 30-March-2021.\u00a0 It traded at 122x\/ 67x\/ 49x the consensus earnings estimate of \u20b9 29.7\/ 54.5\/ 74.4 for FY21E\/22E\/23E respectively.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The consensus price target is <\/span><span style=\"font-weight: 400;\">\u20b9<\/span><span style=\"font-weight: 400;\"> 3,288\/- which trades at 44x the earnings estimate for FY23E of <\/span><span style=\"font-weight: 400;\">\u20b9<\/span><span style=\"font-weight: 400;\"> 74.4\/-<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">Disclaimer: &#8220;The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.&#8221;<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Update\u00a0on the Indian Equity Market: On Tuesday, NIFTY closed at 14,844 (+2.3%). Top gainers in NIFTY50 were UPL (+7.6%), JSW Steel (+4.9%), and Shree Cement (+4.9%). The top losers were Hindalco (-0.3%), Axis Bank (-0.2%), and M&amp;M (-0.1%). The top sectoral gainers were IT (+2.9%), METAL (+2.8%), and PHARMA (+2.7%), and the only sectoral loser [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[610],"tags":[],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1794"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=1794"}],"version-history":[{"count":3,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1794\/revisions"}],"predecessor-version":[{"id":1797,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1794\/revisions\/1797"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=1794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=1794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=1794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}