Last Updated:
Dixon Technologies shares fell 13.58% on the BSE despite a significant 124% increase in December quarter net profit
Dixon Technologies
Dixon Technologies shares plummeted 13.58% to Rs 15,175.20 on the BSE on Tuesday, January 21, despite reporting a strong 124% year-on-year rise in consolidated net profit for the December quarter, reaching Rs 217 crore compared to Rs 97 crore in the same period last year. However, a higher-than-expected depreciation and finance costs led to a 5-7% shortfall in Q3 profitability.
The company’s revenue from operations for Q3FY25 stood at Rs 10,461 crore, a 117% increase from Rs 4,821 crore reported in Q3FY24.
Dixon also reported a 113% rise in Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA), which amounted to Rs 398 crore, up from Rs 187 crore in the same quarter last year. However, the EBITDA margin slipped slightly by 10 basis points to 3.8%, compared to 3.9% in Q3FY24.
The company’s Profit After Tax (PAT) margin improved by 10 basis points, reaching 2.1% in the reported quarter, up from 2% in the previous year.
Should you buy, sell, or hold Dixon Technologies stock? Here’s what analysts are saying:
Jefferies maintained an ‘Underperform’ rating on Dixon, setting a target price of Rs 12,600. The brokerage highlighted a 32 percent year-on-year decline in Dixon’s consumer electronics sales and noted that the stock’s “risk-reward appears stretched at 107x FY26 PE.”
Motilal Oswal Financial Services flagged several potential risks, including slower market growth, loss of key clients, rising competition, and Dixon’s limited bargaining power with clients.
On the other hand, Nuvama Institutional Equities raised its target price for Dixon to Rs 18,790 from Rs 16,400, maintaining a ‘Hold’ rating. The brokerage cited fair valuation and said, “While we appreciate Dixon’s strong execution and future prospects, we maintain a ‘Hold’ and await a better entry point.”
Nuvama also reduced its FY25E/26E/27E PAT estimates by 3 percent, 5 percent, and 10 percent, respectively, due to weaker TV performance, the Vivo joint venture, and the full consolidation of Ismartu. Dixon formed a joint venture with Vivo in December 2024 and plans to enter Display Fab manufacturing, subject to government incentives.
