Multibagger stock crosses Rs 18,000 mark for first time, is the upside capped?

Dixon Technologies share price today: Shares of Dixon Technologies (India) Ltd crossed the Rs 18,000 mark for first time on Friday. Dixon Technologies stock gained 1.89% to a record high of Rs 18,032 on BSE. Market cap of the multibagger stock stood at Rs 1.07 lakh crore. Japanese brokerage firm Nomura has a Buy call on Dixon Technologies with a price target of Rs 18,654 per share.

Citing reasons behind its bullish stance, Nomura said Dixon Technologies has commenced mass production of Google Pixel smartphones. The industry leader's China+1 strategy is likely to unlock substantial long-term growth opportunities through its partnership with Google.

Nomura projected an additional Rs 1,500 crore in revenue, contributing 4% to FY26 smartphone sales, depending on the scale of production.

Brokerage Sharekhan is bullish on the stock with a price target of Rs 18,800. It has a buy call on the multibagger stock.

"Addressable new clients onboarding like Google (Pixel phones) recently, HP, and Asus in the last quarter has set
Dixon on a strong footing for the Mobile and IT hardware segments, propelling its topline growth. We expect the IT hardware segment to see strong growth from FY2026. The mobile segment is also poised to grow and would significantly contribute to topline growth. Dixon has continued to drive backward integration in TV, lightning, and appliances segments, which is expected to provide cushion to operating margins. We retain our BUY rating with a revised price target of Rs. 18,800, factoring in a strong revenue/PAT CAGR of 53%/69% over FY2024-FY2027E," said Sharekhan.

Turnover rose to Rs 29.13 crore as 0.17 lakh shares of the firm changed hands on BSE. In terms of technicals, the relative strength index (RSI) of Dixon Technologies stands at 75.6, signaling it's trading in the overbought territory. Shares of Dixon Technologies are trading higher than the 5 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.

The multibagger stock has clocked stellar returns of 186% in a year and gained 178.43% in 2024. In two years, the stock is up 214.37%.

Dixon Technologies reported a stellar set of earnings for the quarter ended September 2024. Net profit rose 265% year-on-year for the September 2024 quarter. Profit rose to Rs 412 crore on exceptional gain of Rs 209.6 crore and an increase in mobile phone production. Profit in Q2 of last fiscal stood at Rs 113.36 crore. Revenue rose 133% to Rs 11,534 crore in the July-September period compared to Rs 4,944 crore a year ago. Earnings before interest, tax, depreciation and amortization (EBIDTA) stood at Rs 420 crore, up 110 percent year-on-year.

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.