Noida-based Dixon Technologies Ltd. shares tumbled over seven percent during the early session on Wednesday, May 21 as investors rushed to book profits in the firm's stock following its earnings show for the quarter ended March.
Dixon Technologies reported a consolidated net profit of Rs401 crore for the January-March quarter, a fourfold jump from Rs 95 crore in the same period last year. This sharp rise was mainly due to a one-time gain of Rs 250 crore from selling shares of AIL Dixon Technologies.
The company’s revenue from operations in Q4FY25 rose 121 percent to Rs 10,293 crore, compared to Rs 4,658 crore in the corresponding quarter last year. Revenue from its mobile and other EMS segment surged 194 percent to Rs 9,102 crore, while operating profit from this division increased 232 percent to Rs 349 crore.
At 10 am, shares of the stock were quoting Rs
Should you buy, sell, or hold Dixon Technologies shares?
"We believe Dixon’s diversified client base, continued customer acquisition and partnerships provide it a strong moat. Macro tailwinds from higher exports provide longer-term growth visibility. We expect 50 million smartphone sales volume for FY26," said Nomura. The brokerage maintained its 'buy' rating, with a target price of Rs 21,202, down from Rs 22,005 earlier.
Motilal Oswal believes that the firm's revenue growth would be mainly driven by mobile segment, while consumer electronics will remain under pressure for some more time. The brokerage kept its 'buy' call intact, with a price target of Rs 20,500 apiece.
Dixon plans to expand its mobile phones capacity by 50 percent to cater to its anchor customers, even as a part of that will be used for exports to North America (Dixon is optimistic on exports to North America and Africa), noted Nuvama Institutional Equities. "While we like Dixon’s unparalleled execution and balance sheet management, its rich valuation constrains us; maintain ‘hold’," said the brokerage, with a price target of Rs 15,470, which implies a seven percent downside from current levels.
Emkay Global also cut its target price on the stock to Rs 19,800 per share, to factor in the delay in Vivo JV and in display module manufacturing. However, the brokerage maintained its 'buy' tag.
JM Financial has downgraded Dixon Technologies from 'buy' to 'hold' and lowered its target price to Rs 15,650 from Rs 16,500.
The downgrade is based on three factors: delays in production with Vivo and display assemblies with HKC, rising competition after the mobile PLI scheme ends next year, and high valuations that limit further upside.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
