Synopsis:
Shares of Dixon Technologies are in focus after B&K Securities has initiated a buy call on the stock with a target price of Rs 18,946, citing an upside potential of 25 percent.
The shares of this leading electronics manufacturer are in focus after leading brokerage, B&K Securities, has allotted a Buy Call on this stock with a potential upside of 25 percent. In this article, we will dive deep into the details.
With a market capitalization of Rs 94,013, the shares of Dixon Technologies (India) Ltd are currently trading at Rs 15,545 per share, down by 18.82 percent from its 52-week high of Rs 19,149.80 per share. Over the past five years, the stock has delivered a robust return of 1,149 percent.
Leading brokerage, B&K Securities, has initiated a Buy call on the stock with a target price of Rs 18,946 per share, signalling an upside potential of 25 percent from its previous day closing price of Rs 15,202 per share.
The brokerage cited that the company is at the forefront of receiving economic benefits from India’s electronics manufacturing push and the accelerating global shift towards outsourcing and its continuous expansion into different sectors.
The bullish view is given based on several factors such as a large total addressable market (TAM), government policy tailwinds like PLI schemes, rising export potential, and consistently strong return ratios.
It expects that Dixon’s Revenue and Profit After Tax will grow at an annualised CAGR of 42 percent and 69 percent, respectively, between FY25 and FY27. Furthermore, it expects its ROCE at around 30 percent by FY27.
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Financial Highlights
Dixon reported a revenue growth of 120 percent to Rs 38,860 crores in FY25 from Rs 17,691 crores in FY24. Its net profit surged by 229 percent to Rs 1,233 crores in FY25 from Rs 375 crores in FY24.
The stock delivered an ROE and ROCE of 32.92 percent and 39.81 percent, respectively, and is currently trading at a high P/E of 121.31x as compared to its industry average of 36.87x.
Dixon Technologies (India) Limited is a top electronics manufacturer that provides ODM and OEM services in India and worldwide. The company provides LED TVs, AC PCBs, washing machines, refrigerators, LED lighting, mobile phones, medical devices, wearables, set-top boxes, and security systems. The company also offers repair, refurbishment, and IT hardware services.
Written by Satyajeet Mukherjee
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