External broker reports(aggregated public sources), Emkay Global Financial Services Limited

Emkay

Emkay Global Financial Services Ltd. is a leader in the financial services sector, actively creating wealth for our clients for over two decades.

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External broker reports(aggregated public sources)

Emkay Global Financial Services Limited

Emkay Global Financial Services Ltd. is a leader in the financial services sector, actively creating wealth for our clients for over two decades. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

Dixon Technologies India Ltd / Equity Bottom-Up

<ul><li>We believe there are multiple enduring mid-to-long term drivers yet to be baked-in, namely: a) further domination of the rising smartphone assembly opportunity (we expect ~70-75% incremental share for Dixon, taking overall share to ~44% by FY35E vs ~25% now; ~30-35% share priced-in); b) similar opportunity in IT hardware aided by PLI, with Dixon's component foray underpinning its 'right-to-win' in both; c) sharp margin improvement amid aggressive backward integration intent/actions (also opens up third-party sales, exports); d) optionality from Industrial PCBs/auto electronics (potential ~Rs4trn market by FY35E; not built-in).</li><li>We build-in 20%/40% FY25E-35E sales/EPS CAGR (FY27E EPS ~17% above Consensus’, amid accelerated share gains in smartphones, backward-integration benefits) with sustained high RoCE and cash flows; we believe robust prospects justify the premium valuation.</li><li>Outlook We initiate coverage on Dixon Technologies (Dixon) with BUY and DCF-based TP of Rs 20,000 (implied Dec-26E EV/EBITDA of ~41x).</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

We believe there are multiple enduring mid-to-long term drivers yet to be baked-in, namely: a) further domination of the rising smartphone assembly opportunity (we expect ~70-75% incremental share for Dixon, taking overall share to ~44% by FY35E vs ~25% now; ~30-35% share priced-in); b) similar opportunity in IT hardware aided by PLI, with Dixon's component foray underpinning its 'right-to-win' in both; c) sharp margin improvement amid aggressive backward integration intent/actions (also opens up third-party sales, exports); d) optionality from Industrial PCBs/auto electronics (potential ~Rs4trn market by FY35E; not built-in).We build-in 20%/40% FY25E-35E sales/EPS CAGR (FY27E EPS ~17% above Consensus’, amid accelerated share gains in smartphones, backward-integration benefits) with sustained high RoCE and cash flows; we believe robust prospects justify the premium valuation.Outlook We initiate coverage on Dixon Technologies (Dixon) with BUY and DCF-based TP of Rs 20,000 (implied Dec-26E EV/EBITDA of ~41x).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Dixon Technologies - Further Legs to Growth Story