1,147 Cr (-54.91%) YoY | 857 Cr (-39.72%) QoQ
Year ending revenue: 4,400 Cr Vs. 2,984 Cr (47.47%)
Net Profit of 1.60 Cr
23.5 Cr (-93.41%) YoY 27.6 Cr (-94.23%) QoQ
Year ending Net profit: 120.5 Cr Vs. 196 Cr (38.74%)
EPS (in Rs.) 1.35
19.94 YoY | 23.51 QoQ
Year ending EPS: 102.70 Vs. 55.95
View:
Result is below expectation. YoY and QoQ revenue declined
significantly and profit also significantly down. EBITDA margins
declined Y-O-Y owing to decline in production and related under
absorption of overheads.
Business Updates & Highlights:
Q1FY21
EBITDA is around INR 17.1 Cr Vs. 53.1 Cr in Q1FY20 Vs. 55.8 Cr
therefore declined by 67.8% in YoY and 69.9% in QoQ. EBITDA margin in
Q1FY21 was 3.3% Vs. 4.6% in Q1FY20 Vs. 6.5% in QoQ.
Operating profit margin in Q1FY21 was 3.3% Vs. 4.6% in Q1FY20 declined by 130 bps.
Company
is primarily into five business segment viz. consumer electronics –
67%, Lighting Products – 15%, Home Appliances – 5%, Mobile Phones – 10%
and Security system – 3%. YoY topline growth for consumer electronic
was (32%), Lighting was (76%), Home appliances – (76%), Mobile phones –
(63%) and security systems was (80%).
YoY bottom line growth
(operating profit) for consumer electronics – (24%), Light products –
(77%), Home appliances – (96%), Mobile Phones – (37%) and Security
systems – (99%).
Financial
ROE and ROCE is around 20.8% and
26.1% respectively and book value per share is around INR 470 and share
is currently trading at 17.1x of its book value. Company is currently
trading at annualized PE of around 115 which is very high as per
Industry benchmark. Promoter holding in the company is around 36.1%
which is low but stable. FIIs and mutual fund hold around 12.3% and 21%
respectively.
Position: Share strong support price is INR 7500/7000. Long term investor may continue with the company.
Share
View: Share price high 8,300 (52 week) and now 8,000. Dixon
Technologies (India) Limited has been leading the electronic
manufacturing services (EMS) space in India. Founded in 1993 and
commenced manufacturing of colour television in 1994, Dixon has now
expanded its operations to various sub-segments of electronics. Dixon
Technologies provides design focused solutions in consumer durables,
home appliances, lighting, mobile phones and security devices to
customers across the globe, along with repairing and refurbishment
services of a wide range of products including set top boxes, mobile
phones and LED TV panels.
Opportunities
Company business also
comprises of Original equipment manufacturer (OEM) as well as original
design manufacturer (ODM) further will also take the benefit of Make in
India in future for all segment. Samsung, Lava and Dixon have proposed
to produce mobile devices and components of over ₹11 lakh crore in the
next five years under the government's new Production Link Incentives
(PLI) scheme to boost electronics manufacturing. After ban China
products and boost local mfg. Business confidence & condition picked
up in May & significantly improved in June.
Risk
Expensive
valuation and high PE. Business was fairly well till March 2020.
Significant business disruption due to Covid – 19 outbreak in Q1 and it
may impact Q2 as well. Cash conversion cycle is distorted due to weak
revenues in Quarter 1 & hence is an aberration & will be
corrected in Quarter 2.
Disclaimer: The
information provided herein is based on publicly available information and
other sources believed to be reliable, but involve uncertainties that could
cause actual events to differ materially from those expressed or implied in
such statements. The document is given for general and information purpose and
is neither an investment advice nor an offer to sell nor a solicitation. While
due care has been exercised while preparing this document, we do not warrant
the completeness or accuracy of the information. We will not accept any
liability arising from the use of this material. The recipient of this material
should rely on their investigations and take their own professional advice.
Follow, Like, subscribe
and share
"Your Trust, Our
Financial Expertise."
Infyture, Investment For Your Future
Contact: +91-7990271953
// 8347871052
Email: infyture@gmail.com
Website: http://infyture.wordpress.com
Facebook Page: https://www.facebook.com/infyture4future/
Youtube:https://www.youtube.com/channel/UCjOxVGTKQiK5O0mdcuMBCdw?view_as=subscriber
Blogger: https://infyture.blogspot.com/
Financial Planning ||
Equity Tip || Demat Account || Mutual Fund Investment || Life Insurance ||
General & Health Insurance || PMS & mini PMS || Retirement Planning ||
NPS Enrollment
No comments:
Post a Comment
Please do not Enter any Spam Link in Comment Box