Dixon Technologies Stock Jumps 2% On Q4 Earnings
Dixon Technologies net profit surges to Rs 98.5 crore in the fourth quarter with 25 per cent YoY growth
The stocks of Dixon Technologies zoomed in the Wednesday trading session to more than 2 per cent after the electronics manufacturer reported a 25 per cent year-on-year (YoY) in its net profit.
The stock traded at Rs 8,264 with 2 per cent gain in the afternoon session on the National Stock Exchange (NSE).
Dixon Technologies net profit surged to Rs 98.5 crore in the fourth quarter with 25 per cent YoY growth.
The firm reported a 52 per cent growth in operating revenue to Rs 4,658 crore from Rs 3,065 crore in the same period of the previous fiscal year.
Operating EBITDA for the final quarter of this fiscal year was Rs 183 crore, up 17.3 per cent from Rs 156 crore during the same period the previous year.
While maintaining an ‘underperform’ rating on Dixon, brokerage firm, Jefferies has increased its target price to Rs 6,350 per share.
The performance for the fourth quarter met expectations, with sales in the mobile market remaining the main driver. With the exception of smartphones, the majority of other product categories, however, stayed quiet throughout FY24. The volumes of LED TVs had a noteworthy annual fall of 13 per cent.
Kotak Institutional Equities said in a recent analysis that target prices already account for the company's electronics manufacturing services division (EMS), components, and exports, making values costly.
"We lower our FY24 earnings estimate by 8 per cent and raise our FY25 and FY26 estimates by 9 and 6 per cent, respectively, owing to an expected ramp-up in the mobile segment, driven by the Ismartu acquisition," the analysts at Kotak stated.
The electronics manufacturer stock has clocked more than 25 per cent gains in 2024 so far outperforming the benchmark indices with a considerale margin.
