Dixon Technologies’ share price slumped 14% to an intra-day low of Rs 15,120. The stock has fallen 26.6% from its recent high of Rs 19,148.90. Here is the reason why the share price of Dixon Technologies is falling today:
Dixon Technologies Q3 performance
Sequentially, the company’s net profit dropped by 47.5% standing at Rs 216.23 crore for Q3 FY25, as against Rs 411.70. The company’s revenue from operations fell 9.4% quarter-on-quarter to Rs 10,453.68 crore. However, the company posted a stellar year-on-year performance with net profit jumping 123% from Rs 97.09 in Q3 FY24.
Jefferies maintains ‘Underperform’ rating
The brokerage firm, Jefferies, has maintained its ‘Underperform’ rating on the stock with a target price of Rs 12,600. It believes that the company’s risk-reward remains stretched at a P/Eof 106x for FY26. Jefferies sees that the company trades at a very high valuation. It is a non-branded B2B electronics manufacturing service, which trades higher than branded B2C companies.
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Nuvama Institutional Equities cut the estimates for FY25 by 3% and 7% for FY27. The brokerage firm said it revised the estimates due to consolidation in Ismartu, Vivo joint venture, and muted demand in consumer appliances. It has maintained its ‘Hold’ rating on the stock, with a target price of Rs 18,790.
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The brokerage house, Motilal Oswal Financial Services, slashed the earnings estimated by 8% for FY25 and 4% for FY26. The brokerage believes the incremental margin from the display facility to offset the contraction in margins, which will occur because of the PLI scheme ending by FY26. The company is also looking into the possibility of entering the display fabrication market and is waiting for government regulations related to the anticipated component PLI scheme. However, Motilal Oswal has upgraded the FY27 earnings estimates by 7% to factor in higher mobile segment revenues and lower consumer electronics revenues.
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