Shares of Dixon Technologies Ltd slipped over 5% amid a rally in the broader market today. Dixon Technologies shares fell 5.27% to Rs 12,491 today against the previous close of Rs 13,186.55 on BSE. The stock of the electronic goods contract manufacturer opened on a flat note at Rs 13,186. The market cap of the consumer durables firm fell to Rs 75,334 crore. Total 0.27 lakh shares of the firm changed hands over the counter amounting to a turnover of Rs 33.90 crore on BSE.
The multibagger stock has gained 148% in a year and gained 206% in two years.
Equirus Securities has initiated coverage on Dixon Technologies with a SHORT and a Sep’25 price target of Rs 9,830 set at 60 times Sep’26 EPS – implying a 45% EPS CAGR over FY24-FY27E. The price target P/E represents its last three-year average (close to 10 year SD+1 P/E), said the brokerage.
Systematix Securities has a price target of Rs 12,483. It has maintained its HOLD stance on the company.
“We expect 47%/45%/58% compound annual growth rate (CAGR) in revenue/EBITDA/PAT over FY24-26E. New customer additions across key verticals, strong traction in mobiles and fast ramp up in new segments (telecom hardware, laptops, refrigerators, WM) will drive this growth. Robust outlook and 28%/51% RoE/RoIC in FY26E will support its premium valuation,” said Systematix.
Key risks to the brokerage’s projection are demand slowdown in key user segments and loss in key customer’s market share.
In terms of technicals, the relative strength index (RSI) of Dixon Technologies stands at 65.4, signaling it's trading neither in the overbought nor in the oversold territory. Shares of Dixon Technologies are trading lower than the 5 day, 10 day but higher than the 20 day, 30 day, 50 day, 100 day and 200 day moving averages.
Dixon Technologies (India) is the largest home-grown design-focused and solutions company engaged in contract manufacturing products in the consumer durables, lighting and mobile phones markets in India.