🧾 At a glance
Dixon Technologies clocked ₹38,860 Cr in revenue in FY25 – a 22x leap over a decade and nearly ₹1,233 Cr in net profit, a 10x jump from FY20. But with a P/E of 116, 0.03% dividend yield, and mobile phones now 84% of revenue, are they building India’s Foxconn… or becoming a margin hostage?
🏭 About Dixon Technologies
- 👔 Founded: 1993
- 🛠 Core Business: Electronics Manufacturing Services (EMS)
- 🎯 Segments: Mobile phones, TVs, LED lighting, CCTV, PCBs, washing machines, wearables
- 🧠 Clients: Samsung, Motorola, Xiaomi, Realme, Oppo, boAt, Godrej
- 🤝 JVs: With boAt (Imagine Marketing), HKC for LCD modules, and others
Dixon doesn’t sell gadgets to you. They build gadgets for those who do. It’s the ultimate backstage pass in consumer electronics.
👨💼 Key Managerial Personnel (KMP)
| Name | Role |
|---|---|
| Sunil Vachani | Executive Chairman |
| Atul B. Lall | Vice Chairman & MD |
| Saurabh Gupta | CFO |
| Rajeev Singh | COO |
Dixon’s leadership built an empire by quietly assembling everything from your Mi phone to your boAt headphones.
📊 Financial Recap: FY21 to FY25
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 | 5-Yr Growth |
|---|---|---|---|---|---|---|
| Revenue (₹ Cr) | 6,448 | 10,697 | 12,192 | 17,691 | 38,860 | 🚀 +503% |
| EBITDA (₹ Cr) | 292 | 384 | 519 | 705 | 1,508 | 🔥 +416% |
| Net Profit (₹ Cr) | 160 | 190 | 255 | 375 | 1,233 | 💥 +670% |
| OPM (%) | 5% | 4% | 4% | 4% | 4% | 😐 Flat |
| Borrowings (₹ Cr) | 295 | 667 | 453 | 489 | 671 | 🔁 Same as FY22 |
| ROCE (%) | 30% | 23% | 24% | 29% | 40% | ✅ Explosive |
| ROE (%) | 27% | 32% | 28% | 33% | 33% | ⚡ Consistent |
🎯 Forward-Looking Fair Value Estimate: ₹10,500–₹12,500
- FY26E EPS: ₹200
- Applying P/E range of 50–60x (reasonable for high growth EMS)
- ⚠️ Current P/E = 116 → Dixon is priced like a growth-tech SaaS firm
- FV range = ₹10,500–₹12,500
Verdict: The stock is in an “expectation bubble.” Reality needs to catch up.
🧩 Business Segments (FY25 Share)
| Segment | FY25 Share | Growth YoY |
|---|---|---|
| 📱 Mobile + EMS | 84% | +221% |
| 💡 Lighting | 7% | +40% |
| 📺 Consumer Electronics | 5% | +60% |
| 🎧 Hearables/Wearables | 3% | +90% |
| ❄️ AC PCBs | 1% | New |
Mobile manufacturing is the juggernaut, but it’s also low-margin and scale-heavy.
💰 Balance Sheet Breakdown
| Item | FY21 | FY25 |
|---|---|---|
| Net Worth (₹ Cr) | ₹738 | ₹3,010 |
| Borrowings (₹ Cr) | ₹295 | ₹671 |
| Fixed Assets (₹ Cr) | ₹550 | ₹2,775 |
| CWIP (₹ Cr) | ₹72 | ₹256 |
| Total Assets (₹ Cr) | ₹2,846 | ₹16,767 |
Assets ballooned 6x – all to build EMS muscle across India.
📉 Cash Flow Summary
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash (₹ Cr) |
|---|---|---|---|---|
| FY21 | ₹170 | ₹-265 | ₹63 | ₹-32 |
| FY22 | ₹273 | ₹-464 | ₹304 | ₹113 |
| FY23 | ₹726 | ₹-356 | ₹-330 | ₹41 |
| FY24 | ₹584 | ₹-531 | ₹-70 | ₹-17 |
| FY25 | ₹1,150 | ₹-1,229 | ₹-27 | ₹-106 |
⚠️ Despite record operating cash, capex is so heavy that Dixon ends up cash-negative. The factory never sleeps.
📉 Valuation vs Reality
| Metric | Value |
|---|---|
| CMP | ₹14,914 |
| P/E | 116 |
| Book Value | ₹500 |
| Price/Book | ~30x |
| Dividend Yield | 0.03% |
| Sales CAGR (5Y) | 55% |
| Profit CAGR (5Y) | 45% |
Valuation suggests tech unicorn. Fundamentals say manufacturing sweatshop (with love).
🔎 EduInvesting Take
“Dixon is building India’s iPhone factory – but investors expect Apple margins too.”
- 📞 84% revenue from mobile EMS = scale, but risk
- 📈 FY25 profit of ₹1,233 Cr = amazing, but only 3% net margin
- 🧮 Valuation? Tech-bro hallucination
- 💰 Dividend = ₹0.03 for every ₹100 in share price. That’s not yield, that’s a rounding error.
Dixon is the poster child of Make-in-India, but don’t confuse volume with value.
🚨 Risks & Red Flags
- ❌ Extreme valuation (P/E 116)
- ❌ Over-reliance on single segment (mobiles)
- ❌ Other Income in FY25 = ₹498 Cr (includes non-operating elements)
- ❌ Margin stagnation at 4% OPM
- ❌ Promoter holding slowly decreasing
If mobile EMS stumbles, it could trigger a domino effect.
📈 Stock Performance
| Period | Return |
|---|---|
| 1 Year | +49% |
| 3 Years | +60% CAGR |
| 5 Years | +72% CAGR |
Investors who held since ₹1,500 levels = now feel like EMS royalty. But anyone entering at ₹15,000 is already priced into FY27’s dream.
🏷️ Tags
Dixon Technologies, EMS India, Dixon FY25 results, Dixon stock analysis, Dixon mobile manufacturing, PLI EMS stocks, EduInvesting, Dixon vs PGEL, Make in India electronics, high P/E stock India
✍️ Author: Prashant Marathe
📅 Date: 10 June 2025
