Shares of multibagger Dixon Technologies hit their record high on Wednesday amid high volatility in the broader market. Dixon Technologies stock gained 2.82% intra day to a high of Rs 14,931.75 against the previous close of Rs 14,522.20 on BSE. The stock of the electronic goods contract manufacturer opened higher at Rs 14,558. Later, the stock ended 1.57% higher at Rs 14,750 on BSE. Market cap of the consumer electronics firm rose to Rs 88,259 crore.
Total 0.33 lakh shares of the firm changed hands over the counter amounting to a turnover of Rs 48.03 crore on BSE. The multibagger stock has gained 189% in a year and 242% in two years. It has rallied 92% in the last six months.
In terms of technicals, the relative strength index (RSI) of Dixon Technologies stands at 63.2, signaling it's trading neither in the overbought nor in the oversold territory. Shares of Dixon Technologies are trading higher than the 10 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.
Ameya Ranadive, CMT CFTe, Sr Technical Analyst, StoxBox said, "Dixon Technologies (DIXON) is currently trading at Rs 14,805, demonstrating a strong upward trajectory within a rising channel. The stock continues to take support and resistance levels along the way, signaling healthy price action. Recent volume expansion in the last two trading sessions suggests growing investor interest, further strengthening the technical outlook. With strong chart patterns, DIXON is poised for a potential mid-term rally, with upside targets of Rs 15,500 to Rs 17,000. Any pullbacks should be viewed as buying opportunities, with crucial support established at Rs 13,400. Investors are encouraged to watch for these retracements to add to their positions, as the stock shows sustained strength and positive market sentiment."
Sebi-registered research analyst AR Ramachandran is bullish on the stock.
"Dixon Technologies stock price is bullish on the Daily charts with strong support at Rs 14,480. A daily close above the resistance of Rs 15,104 could lead to a target of Rs 16,113 in the near term," said Ramachandran.
Motilal Oswal has a price target of Rs 15,000 on the stock.
"We estimate a revenue/PAT CAGR of 44%/51% during FY24-27. We believe that an efficient working capital cycle, a focus on capital allocation, and higher asset turnover ratios should result in an RoE/ RoCE of 33%/36% by FY27E. We initiate coverage on the stock with a BUY rating and a DCF-based TP of Rs 15,000. Though valuations are on the higher side, strong industry growth drivers, presence in the fast-growing segments, possibility of adding more segments, and best-in-class RoIC will keep valuations higher," said Motilal Oswal.
Japanese brokerage firm Nomura has a 'Buy' rating on the stock. It has fixed a target price of Rs 15,567 per share, citing benefits from localisation in mobiles and IT hardware.
Mentioning Dixon's significant business-to-consumer opportunities, the brokerage said that the company could capture over 30% of India's mobile industry by FY27, with additional growth expected from exports. The brokerage also mentioned Dixon's strong return on capital employed (ROCE) and its ability to maintain a premium valuation due to increasing backward integration.
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.