The shares of the Electronic Manufacturing Services provider fell up to 8 percent in today’s trading session after a well-known brokerage assigned the lowest target price of Rs 8,696 apiece, post Q4 results.
With a market capitalization of Rs 94,632.14 crore, the shares of Dixon Technologies (India) Ltd were trading at Rs 15,710.05 per share, decreasing around 4.41 percent as compared to the previous closing price of Rs 16,566.90 apiece.
Q4 Highlights
The shares of Dixon Technologies (India) Ltd have seen bearish movement after reporting positive Q4 results, revenue decreased by 2 percent on a quarter-on-quarter basis from Rs 10,454 crore in Q3FY25 to Rs 10,293 crore in Q4FY25. Further, revenue increased by 120 percent year on year, from Rs 4,658 crore in Q4FY24 to Rs 10,293 crore in Q4FY25.
The company’s net profit increased by 115 percent on a quarter-on-quarter basis, from Rs. 216 crore in Q3FY25 to Rs.465 crore in Q4FY25. Further, net profit magnified significantly by 379 percent year on year from Rs 97 crore in Q4FY24 to Rs 465 crore in Q4FY25.
The company posted a strong FY24- 25 performance, with revenue increasing 120 percent from Rs 17,691 crore to Rs 38,860 crore. Net profit jumped 228 percent, from Rs 375 crore to Rs 1,233 crore, reflecting strong profitability over the previous financial year. The board approved a final dividend for the financial year 2024-25 at the rate of Rs. 8 per equity share of the face value of Rs. 2 each
Additionally, on 8 July 2024, the Holding Company sold its 50% stake (9.5 million shares) in AIL Dixon to Aditya Infotech Ltd in exchange for 6.5% equity in Aditya. The transaction resulted in a fair value gain of Rs 25,037 lakhs and Rs 20,961 lakhs, recorded as exceptional items.
Also read: Tata Group stock jumps 5% after receiving ₹1,525 Cr additional order from BSNL
Brokerage Recommendations
Morgan Stanley, one of the well-known brokerages globally, has given an ‘Equal-Weight’ rating on this EMS stock with a target price of Rs 8,696 apiece, indicating a downside of 45 percent from Wednesday’s price of Rs 15,834.95 per share.
The brokerage noted that Dixon’s revenue fell short of expectations due to widespread declines across major segments. However, EBITDA surpassed estimates by 8 percent, supported by improved operational efficiency and margin expansion across various segments.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
