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Rakesh Jhunjhunwala is considered to be the greatest investor in Indian Stock Market. Rakesh Jhunjhunwala guru mantra to be successful in stock market is as enumerated below:

(a) He advises people to become interested in a stock when none is interested in the same stock. As per him BUY RIGHT & HOLD TIGHT for years to come. He has been holding few stocks for last 10 years and he is still minting money from those stocks.

(b) He further advises that one should not follow big investors blindly as their risk profile and long term goals with time frame may be difficult to be followed by retail investor.

(c) Market is supreme and every thing is reflected in the price and thus their is no point in fighting the trend as market is always right.

(d) One should be able to create a balance between the fear and greed.

(e) As per his words one has to learn the stock market trading as none can teach the market as stock market experience is the best teacher.

Thus follow Rakesh Jhunjhunwala advice in stock market, BE PATIENT and grow big like Warren Buffet or this iconic man from Dalaal Street.

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Monday, December 23, 2019

My Investment Idea No. 7: Dixon Technologies (India) Private Limited

Long Term Investment Idea No. 7

Dixon Technologies (India) Private Limited

1.    Face Value = Rs 10

2.    Equity = 11.33 Cr

3.    Price = Rs 3740

4.    Market Cap = Rs 4325 Cr (Small Cap)

5.   Dixon technologies (India) is the largest home grown design focused and solution company engaged in the manufacturing of Consumer Electronics like LED TVs, Home Appliances like Washing Machines, Lighting Products like LED Bulbs, CFL Bulbs and Tube Lights etc, Mobile Phones like feature phones and smart phones for Major Brands in India. It also provides reverse logistics solution i.e repair and refurbishment of Set Top Boxes, Mobile Phones and LED TV Panels. Dixon Technologies have 10 state of the art manufacturing facilities. A new facility is proposed to be in Tirupati for Southern India Markets.

6.    Dixon Technologies makes Consumer Electronics like LED TVs for the following brands:-
       (a)    Panasonic
       (b)    Haier
       (c)    Reliance ReConnect
       (d)    Intex
       (e)    BPL
       (f)     Vise
       (g)    Mitashi 
       (h)    Abag

7.    Dixon Technologies makes Semi Automatic ranging from 6.2 to 8.5 kg for the following brands:-
       (a)    Panasonic
       (b)    Haier
       (c)    Reliance ReConnect
       (d)    Intex
       (e)    BPL
       (f)     LLoyd
       (g)    Mitashi 
       (h)    Godrej
       (i)     Weston
       (j)     Elctrolux

8.    Dixon Technologies makes CFL and LED products for the following brands:-
       (a)    Philips
       (b)    Surya
       (c)    Bajaj
       (d)    Anchor

9.    Dixon Technologies makes Mobile Phones for the following brands:-
       (a)    Panasonic
       (b)    Karbonn
       (c)    Gionee
       (d)    Intex
      
10.   Company is also making CCTV and Digital Video Recorders (DVRs) under the Trade Mark CP PLUS.

Results Overview

        Net Sales (NS)/ Net Profit (NP)/ Earning Per Share (EPS)

Yearly

11.    2015: Rs 1203.13 Cr/ Rs 13.04 Cr/ Rs 11.51
12.    2016: Rs 1391.17 Cr/ Rs 42.57 Cr/ Rs 37.57
         Yearly YoY Growth in NP = 226.45%
13.    2017: Rs 2458.53 Cr/ Rs 47.57 Cr/ Rs 41.98
         Yearly YoY Growth in NP = 11.74%
14.    2018: Rs 2845.80 Cr/ Rs 60.90 Cr/ Rs 53.75
         Yearly YoY Growth in NP = 28.02%
15.    2019: Rs 2990.08 Cr/ Rs 63.35 Cr/ Rs 55.91
         Yearly YoY Growth in NP = 4.02%

Half Yearly

16.    HY FY 2019: Rs 1334.83 Cr/ Rs 29.19 Cr/ Rs 25.76 
17.    HY FY 2020: Rs 2552.30 Cr/ Rs 66.62 Cr/ Rs 58.80
         Half Yearly YoY Growth in NP = 128.22%

Shareholding Pattern

18.   Promoters:                       38.07%
19.   FII/ FPI:                           08.33%
20.   Financial Institutions:      00.08%
21.   Mutual Funds:                  20.88%
22.  Other DIIs:                       22.36%
23.  Public:                              10.28% 

Investment rationale

24.    Its a Consumption driven story and in spite of the fact that the demand was low during the FY 2019, it has managed to clock growth in NP, though only 4%. However, 128.22% growth in the results of HY FY 2020 as compared to HY FY 2019 indicate that demand is back. It is worth noting that HY FY 2020 NP of Rs 66.62 Cr is more than the full FY 2019 NP of Rs 63.35 Cr.

25.    With the revival of Housing Sector, the demand in consumption story is going to be become even stronger. Moreover, the business model of the company is such that it can keep adding additional Verticals like Fully Automatic machines etc. Even without additional Verticals, additional manufacturing units can be set up to benefit from rising expenditure on consumption.

26.    Presently, it is trading at Rs 3740 and I think I would consider entry point in this stock closer to around Rs 3400-3600 for long term investment.

Disclaimer

27.    The information provided above has been taken from internet, which may or may not be correct. Therefore, do your own research before investing.

28.    The post written above is not to be taken as a "Buy Recommendation" by the author on Dixon Technologies and no one should take decision to invest in Dixon technologies based on the information provided in this blog. This blog is written only to express the views of the author, which could be right or wrong. You must consult your Financial Adviser before investing in Dixon Technologies (India) Private Limited.

2 comments:

pallavi said...

Nice Article. Thank you for sharing the informative article with us.
This post is helpful to many people. stockinvestor.in is a stock related website which provides all stocks related information like new stocks and shares available in the stock market.
Bank Nifty
NSE

October 12, 2020 at 4:54 AM
Investment Advice said...

Investment advice refers to recommendations given to individuals or organizations on how to manage their investment portfolio. This advice may come from financial professionals, such as financial advisors or investment managers, who analyze market trends and provide insights on how to maximize returns and minimize risks. It is important to carefully consider the source and quality of investment advice before making any decisions.

May 1, 2023 at 2:47 AM

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DISCLAIMER

DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.