Dixon Technologies Share Price: Shares of Dixon Technologies crashed as soon as trading started today on January 21. The share price fell by more than 14 percent to a low of Rs 15,120. This decline comes after the company’s December quarter results, which disappointed investors. The company said that both its net profit and revenue in the December quarter have declined as compared to the previous quarter. Dixon Tech’s December net profit declined by 47.5 per cent to Rs 216 crore from Rs 411.7 crore in the same quarter a year ago. Its revenue also declined by 9 percent to Rs 10,453.7 crore during this period as compared to last year.
Around 11.15 am, shares of Dixon Technologies were trading 13.5 per cent lower at Rs 15,190 on the NSE. The company’s shares have fallen by about 14.5 percent so far in the month of January, while in comparison the Nifty index has fallen by only 1.5 percent during this period.
After the quarterly results, brokerage firm Jefferies has given the stock an ‘underperform’ rating and a target price of Rs 12,600 has been fixed for it. This is an estimated decline of about 28 percent in the stock from Monday’s closing price. The brokerage said Dixon Tech’s consumer electronics sales have declined 32 per cent YoY and its risk-reward ratio looks a bit stretched even at the current valuation of 107x FY26 PE.
Whereas Goldman Sachs has advised to ‘Sell’ it and has predicted its price to fall to 10.240. This is estimated to be a huge fall of about 42 percent in this stock from Monday’s closing price.
Motilal Oswal Financial Services also pointed out potential risks associated with the stock. These include lower than expected market growth, loss of relationships with major customers, increased competition and limited bargaining power with clients.
However, Nuwama Institutional Equities meanwhile increased its target price for Dixon to Rs 18,790 from Rs 16,400. Also terming the stock’s valuation as reasonable, it maintained a ‘Hold’ rating on it. “We appreciate Dixon’s exceptional execution and future prospects. We maintain a ‘Hold’ rating on the stock and await better entry prices,” the brokerage said.
Nuwama has cut its FY25E/26E/27E PAT estimates by 3 per cent, 5 per cent and 10 per cent, respectively, due to weak TV performance, JV with Vivo and full consolidation of Ismartu. Dixon had announced the formation of a joint venture with Vivo in December 2024 and planned to enter the manufacturing of display fabs based on government incentives.
Also read- Why Zomato Shares Fall: Zomato broke again, due to these reasons shares fell by more than 12%, health is like this on the chart
Disclaimer: The views and investment advice given by experts/brokerage firms on Moneycontrol are their own and not those of the website and its management. Moneycontrol advises users to consult certified experts before taking any investment decision.