DIXON

Dixon Technologies Looking at Dixon Technologies, it's interesting to see FIIs lighten their holdings while DIIs stepped in, a clear vote of confidence from domestic institutions. The stock has taken a significant hit, currently trading 43% off its peak and below its 200-day moving average. With a PE of 48 and ROCE at 40%, but a notably low ROE of 2%, the picture is mixed. However, history often rhymes here; Dixon has a track record of sharp corrections, typically 35-45% after big rallies, only to see remarkable recoveries. This recent 50% slide, despite relatively stable earnings and no major top-line or bottom-line issues, puts valuations back to 2019 levels, far cheaper than the 2023 dip. The narrow 4% operating profit margin does present a vulnerability to raw material costs. Yet, for long-term investors, if its historical resilience holds true, this dip could be a compelling value opportunity.