Dixon Technologies (India) Ltd.
ISIN: INE935N01020 • Market Cap: ₹88,626 Cr
The 5-Pillar Quality Audit for Dixon Technologies (India) Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (3.6%), Return on Capital Employed (30.1%), and equity compounding (36.4%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.07 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (61.7%) and 3Y PAT CAGR (100.5%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 47.21 vs PEG of 1.41 and Dividend Yield of 0.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 28.6%, backed by 46.3% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 30.1%)
Dixon Technologies (India) Ltd. generates exceptional return on capital employed of 30.1%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 36.4%)
Shareholder equity compounds at a healthy 36.4%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.07)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 61.7%)
Revenue has expanded at 61.7% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 100.5%)
Net earnings have compounded at 100.5% annualized, demonstrating operating leverage.
Deep Institutional Sponsorship (46.3%)
Mutual funds, domestic DIIs, and foreign FIIs hold 46.3%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Consumer Durables)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Consumer Durables space.
Quantitative Strategy Eligibility
Checking DIXON against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 82/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Consumer Durables Sector Peer Comparison
Compare DIXON directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Dixon Technologies (India) Ltd. (DIXON)Current | 82/100 | ₹88,626 Cr | 47.21 | 30.1% | 0.07 | — |
| Titan Company Ltd. (TITAN) | 70/100 | ₹4.50 Lakh Cr | 78.05 | 39.2% | 1.76 | View |
| Asian Paints Ltd. (ASIANPAINT) | 67/100 | ₹2.51 Lakh Cr | 52.73 | 24.4% | 0.11 | View |
| LG Electronics India Ltd. (LGEINDIA) | 65/100 | ₹1.12 Lakh Cr | 61.16 | 28.4% | 0.00 | View |
| Havells India Ltd. (HAVELLS) | 70/100 | ₹80,202 Cr | 49.11 | 22.7% | 0.00 | View |
| Berger Paints India Ltd. (BERGEPAINT) | 63/100 | ₹62,340 Cr | 51.24 | 16.5% | 0.02 | View |
Frequently Asked Questions: Dixon Technologies (India) Ltd.
Q:What is the 5-Pillar Fundamental Score for Dixon Technologies (India) Ltd. (DIXON)?
Dixon Technologies (India) Ltd. has a RupeeTools Fundamental Score of 82/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (77/100), Financial Health (87/100), Growth (99/100), Valuation (65/100), and Ownership Quality (72/100).
Q:Is DIXON fundamentally strong for long-term investment?
Yes, DIXON exhibits solid fundamental strength with a 82/100 score, driven by a return on equity of 36.4% and a debt-to-equity ratio of 0.07.
Q:Does DIXON pass the Coffee Can Investing filter?
Yes! DIXON satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does DIXON compare against other Consumer Durables peers?
Within India's Consumer Durables sector, DIXON trades at a P/E of 47.21 and generates an ROCE of 30.1%. Compare its 5-Pillar score of 82/100 against top sector peers like Titan Company Ltd. (70/100), Asian Paints Ltd. (67/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.