Dixon Technologies gains over 3% after better-than-estimated Q2 performance

Shares of the consumer electronics major Dixon Technologies in early trade on Friday zoomed as much as 3.22 per cent to hit the day’s high of Rs 5513.35 after its stellar Q2 show. Ahead of the results, the stock closed at Rs 5341.1 per share on the BSE

Net profit at the electronics goods manufacturer for the September quarter jumped 47.1 per cent year-on-year to Rs 113.4 crore versus Rs 77 crore in the same quarter of the previous fiscal year. Total revenue at the company came in at Rs 4943.2 crore, up 27.8 per cent in comparison to Rs 3867 crore reported in the corresponding period of the last fiscal.

The company’s revenue from the Mobile and EMS segment soared 77 per cent to Rs 2819 crore, while the revenue from consumer electronics declined 4 per cent to Rs 1440 crore in the Q2 period. Likewise, revenue from the lighting products segment also declined 38 per cent to Rs 181 crore. 

At the time of publishing the copy at 9:37 am, the stock traded 0.81 per cent higher at Rs 5384.45 apiece.

Brokerages take on Dixon Technologies post Q2 performance 

Domestic brokerage Nuvama has retained its ‘Hold’ rating on the consumer electronics manufacturer citing rich valuations. The brokerage, however has raised the target price to Rs 5150.

Dixon has guided for a steep ramp-up in mobile revenue, which the brokerage estimates would climb from Rs 4200 crore (FY23) to Rs over 15000 crore (FY25).

“We are positive on Dixon’s growth trajectory; however at 50x PE on FY26E, the valuations do not indicate a good entry point in our view. We are raising FY24/25E PAT by 8%/25% and our DCF-based TP to INR5,150 (from INR3,925),” noted the brokerage.