Dixon Technologies: Preparing to ride a second growth wave
₹180 crore, implying a growth of over 47% from the same period last year. The 5-year average return on equity for Dixon was at 23%.
This consistent performance has helped the company keep debt at bay, paving the way for a well-capitalised balance sheet to enable it to fund its next leg of growth. All these have contributed to the stock’s skyrocketing valuations.
Shares of Dixon have appreciated by as much as 1,400% over the past five years. On Friday, the stock hit a 52-high of Rs6,034.95 apiece during market hours, and closed 8% higher than the previous day.
The stock now trades at 60 times estimated earnings for FY25, showed Bloomberg data. The strong outlook from Dixon’s existing business and its expansion into the new markets instil confidence in the company’s ability to maintain its growth trajectory over the long-term.
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