Shares of Dixon Technologies zoomed 9.38% on Wednesday’s early trades to reach an intraday high of ₹ 3583.00 apiece after the company reported its results for the last quarter of the financial year 2022-23. In the past five days, its share price increased by 19.15%.
Dixon Technologies (India) Ltd is one of the largest home-grown design-focused solutions companies in India. It manufactures consumer durables, lighting and mobile phones/smartphones and other products for various well-known brands. At 12:26 Pm, its shares were trading at ₹ 3508.80 apiece, up 7.12%.
On a consolidated basis, the company registered a 27.70% growth in its net profit to $ 80.62 crores for the January to March quarter (Q4FY23), as compared to ₹ 63.13 crores reported in the corresponding quarter last year (Q4FY22). Its revenue from operations climbed 3.82% at ₹ 3065.45 crores in Q4FY23, as compared to ₹ 2952.75 crores in Q4FY22.
For the entire year (FY23), the electronics manufacturing firm’s net profit zoomed 34.02% to ₹ 255.08 crores, against ₹ 190.33 crores in the previous year (FY22). Its revenue increased by 13.98% to ₹ 12,192.01 crores in FY23, as compared to ₹ 10,697 crores in FY22.
The company reappointed Keng Tsung Kuo as Non-Executive Independent Director for the second term of five consecutive years with effect from 12th April 2024, subject to the approval of shareholders of the company in the ensuing annual general meeting. He has over 30 years of rich and extensive experience in business selling and strategy, human resources and globalization strategy, change management and leadership management.
Dixon Technologies is a mid-cap company with a market capitalization of ₹ 19,510 crores./ It has an ideal return on inequity of 22.40% and an ideal debt-to-equity ratio of 0.35. The company’s shares were trading at a price-to-earnings ratio (P/E) of 76.89 which is substantially higher than the industry average of ₹ 14.23, indicating that the stock might be overvalued as compared to its peers.
The company’s promoters hold a 34.05% stake in it followed by retail investors with 30.84%, foreign institutions with 12.04%, Mutual funds with 11.99% and domestic institutions with 11.08%.
Written By Simran Bafna
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