Shares of Dixon Technologies (India) fell over 13 percent after the company reported a sequential decline in its consolidated net profit and revenue from operations for the quarter ending December. In Q3FY25, Dixon's net profit dropped 47.5 percent year-on-year to Rs 216 crore from Rs 411.7 crore in Q3FY24. Revenue for the quarter declined by over 9 percent to Rs 10,453.7 crore.
The stock has declined 12 percent year-to-date, underperforming the Nifty 50 index, which slipped 1.5 percent during the same period.
Jefferies maintained an 'Underperform' rating on the stock, setting a target price of Rs 12,600. The brokerage pointed out that Dixon's consumer electronics sales dropped 32 percent year-on-year and remarked that its "risk-reward seems stretched at 107x FY26 PE."
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Motilal Oswal Financial Services flagged potential risks, including slower-than-expected market growth, loss of key client relationships, increased competition, and limited bargaining power with clients.
Meanwhile, Nuvama Institutional Equities raised its target price for Dixon to Rs 18,790 from Rs 16,400, maintaining a 'Hold' rating on the stock, citing fair valuation. "While we admire Dixon's exceptional execution and future prospects, we maintain 'Hold' and await better price point for entry," the brokerage added.
Nuvama are cut its FY25E/26E/27E PAT estimates by 3 percent, 5 percent, and 10 percent, respectively, due to weaker TV performance, the Vivo JV, and the full consolidation of Ismartu. Dixon formed a JV with VIVO in December 2024 and plans to enter Display Fab manufacturing, depending on government incentives.
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