Dixon Technologies (India) Limited

“Dixon is India's uncontested EMS leader riding a multi-decade localisation wave, with a founder-led management team that has compounded revenues at 43% CAGR and maintained 42% ROCE — genuine qualities that are not in dispute. However, reported earnings are structurally inflated by ~35-40% from time-limited PLI government transfers, the mobile segment is dangerously concentrated on a single customer (Samsung), and the stock at 42x trailing P/E (65x ex-PLI) prices in flawless execution with zero margin of safety. With trailing earnings growth having turned deeply negative (-36%) and forward P/E actually exceeding trailing, the near-term earnings trajectory is deteriorating at the exact moment valuation demands perfection. This is a business to own — but not at this price.”