Any update if they will receive any PLI subsidy as that can improve margins significantly. We shoudl ask questions on this if they hold investor conference. Stock has taken a hammering however quarter to quarte peformance is really good and deal pipeline very impressive too. HOLDING with patience
I had written mail to them to know about status of pli subsidy and suggest that they hold investor conference after quarterly results like reputed companies do , no response
3 Likes
Typically contract manufacturers globally don’t trade above 0.5 P/S . Wistron trades at 0.38.
Globally what happens has little to do with it.Dixon sales at 2.5x ,kayness at 10x . Oil is free in Venezuela or cheaper than water in middle east does not mean it would be free in India .Similarly wistron listed in Taipei and operating mostly in taipei cant get same multiples as dixon in India. Uniqueness and capital market strength has a lot of influence which can’t be ignored offhand .
One more thing: It is all about increasing EPS.
Still assessing this company. At this valuation, it seems like Good buy for 4-5 yrs then 300B electronic export target can be met.
Contra views are welcomed.
Very average quarter , AGM was equally disappointing when management just planted a few yes men shareholders who asked questions. CEO was not even present in AGM shows the professionalism of promoters. Have been holding since 3 years and will be trimming stake.
I had done initial due diligence on this company and checked their AR…since they have a holding company structure, very little worthwhile information is available in AR to evaluate the EMS side of business and make a view on the future of the company. Management keeps giving interviews and paints rosy future, thought nothing much has materalized as yet…latest deal on manufacturing mobile phone screens (in partnership with corning) also will take time to show impact.
Considering all these factors, i exited the company in a matter of weeks.