Dixon Technologies Shares Slide Nearly 6% Despite Strong Q4 Profit Surge
Shares of Dixon Technologies plunged nearly 6% in intraday trade on Wednesday, even as the company reported a sharp rise in its fourth-quarter earnings. The stock hit a low of ₹15,627.55 on the BSE, reacting to what analysts termed as “valuation concerns” despite robust financial performance.
The company posted a 322% year-on-year jump in profit after tax (PAT) to ₹401 crore for Q4 FY24, up from ₹95 crore in the corresponding quarter last year. Revenue surged 121% to ₹10,293 crore, compared to ₹4,658 crore a year ago, driven by strong performance in its mobile phone and electronic manufacturing segments.
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Brokerage firm Nomura retained its ‘buy’ rating on Dixon, highlighting the company’s diversified client portfolio, continued customer acquisitions, and strong export potential. It, however, revised the target price to ₹21,202 from ₹22,005, citing moderate adjustments.
“We expect 50 million smartphone sales volume for FY26, supported by Dixon’s expanding capacity and export potential,” Nomura said in a note.
Motilal Oswal also maintained its ‘buy’ recommendation, with a target price of ₹20,500, stating that revenue growth would be led by the mobile segment, even as the consumer electronics business faces near-term headwinds.
Nuvama Institutional Equities, while acknowledging Dixon’s “unparalleled execution and balance sheet management,” expressed concern over its current valuations. The brokerage maintained a ‘hold’ rating with a target price of ₹15,470, implying a potential downside of 7% from current levels.
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Dixon has announced plans to increase its mobile phone manufacturing capacity by 50% to meet the growing demand from its anchor clients. A significant portion of the expanded output is earmarked for exports to North America and Africa — a move expected to further diversify its revenue base.
Despite strong fundamentals, investor concerns over stretched valuations appeared to weigh on sentiment, triggering the day’s sell-off.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
