Are Dixon Looking Promising? Let’s Break It Down…

1) Fundamental View — Demand Soft, But Growth Engine Strong Dixon’s Q2 numbers look solid even after the GST hit in August–September. What stood out? Sales jumped to 14,855 Cr (vs 11,534 Cr last year). Operating profit at 561 Cr, highest ever. Net profit at 746 Cr (3x but with other income). Working capital at –6 days, rare for manufacturing players. ROCE 49% & ROE 34%, best in the EMS sector. The company is executing massive backward integration — displays, batteries, camera modules, mechanicals — all of which push margins higher in FY27–FY28. 2) Technical View — Good Bounce… But Resistance Is Still There Looking at the chart: Stock recently took support near 15,200–15,400 zone. Trading above 200-day moving average — a positive sign. But immediate hurdles sit at 16,000–16,200 (exact area where it reversed last time). RSI has recovered from oversold levels — but not yet showing strong momentum. Volumes on the bounce are improving, but not explosive. Price Action Summary: Trend is improving, but the stock needs a clean breakout above ₹16,200 for a strong up-move. Below ₹15,300 — weakness can come back. Street Tone: Most analysts remain positive. The only concern is valuation + short-term demand distortion due to GST changes, but long-term story remains intact. 4) Final Thoughts — “Promising? Yes. Straight Rally? Maybe Not.” Dixon fundamentals look stronger than ever. The growth engine is running on 5 cylinders: mobiles, telecom, IT hardware, lighting, components. But the chart says: Wait for ₹16,200 breakout if you want a safer entry. short-term is choppy. Long-term is powerful. If Dixon executes its display + battery + camera module plans, this can become India’s biggest EMS compounder of the decade.