2 hrs ago
Dixon Technologies Shares Slip as Brokerages Reassess Growth Prospects
Dixon Technologies makes electronic products for other companies.
Its shares were trading at Rs 13,160, which is well below their recent 52-week high.
Different financial experts have different opinions about what may happen next.
JM Financial thinks the shares could rise and increased its target price.
Nuvama is more cautious because a Vivo joint venture may be consolidated later than expected.
Nuvama still expects the company’s components business to grow faster in the following financial year.
JP Morgan is optimistic that exports and new businesses such as defence and medical electronics can support growth.
Higher smartphone prices may partly offset weaker smartphone shipments.
Dixon Technologies shares traded at Rs 13,160, about 29% below their 52-week high, with a market capitalization of Rs 80,504 crore.
Trading turnover reached Rs 9.05 crore as 6,903 shares changed hands on BSE.
JM Financial retained a buy call and raised its price target to Rs 14,200 from Rs 11,200.
Nuvama retained its hold rating and an Rs 14,800 target while cutting FY27 EPS estimates by 7%.
JP Morgan maintained an overweight rating with a Rs 16,400 target, citing exports and expansion into high-margin segments.
- Who
- Dixon Technologies (India) Ltd., along with brokerages JM Financial, Nuvama and JP Morgan.
- What
- Dixon Technologies shares traded below their 52-week high while brokerages issued differing ratings and price targets.
- Where
- On BSE; Dixon Technologies operates in India’s electronic manufacturing services industry.
- When
- In the current trading session; the estimates discussed cover FY27 and FY28.
- Why
- The stock is being assessed amid weaker smartphone shipments, higher device prices, a possible delay in Vivo joint-venture consolidation, and expected growth in components and exports.
Cautious view
Optimistic view
Near-term earnings
Cautious view
Nuvama expects a 7% reduction in FY27 EPS because consolidation of the Vivo joint venture may be delayed.
Optimistic view
JM Financial says higher smartphone average selling prices of roughly Rs 12,500–Rs 13,000 may cushion weaker June-quarter shipments.
Future growth
Cautious view
Nuvama retains a hold rating and points to changes in the expected pace of business expansion.
Optimistic view
JP Morgan expects exports to drive the next growth phase, while Nuvama projects a 9% increase in FY28 EPS from faster components-business expansion.
Stock outlook
Cautious view
Nuvama’s hold rating reflects a more measured view despite its Rs 14,800 target price.
Optimistic view
JM Financial has a buy rating with a Rs 14,200 target, while JP Morgan maintains an overweight rating and a Rs 16,400 target.
Key facts
- Current price
- Rs 13,160 in the current session
- 52-week performance
- The stock was about 29% below its 52-week high
- Market capitalization
- Rs 80,504 crore
- BSE turnover
- Rs 9.05 crore, with 6,903 shares traded
- JM Financial target
- Rs 14,200; buy rating
- Nuvama target
- Rs 14,800; hold rating
- JP Morgan target
- Rs 16,400; overweight rating
Quotes
Nuvama
Brokerage that provided earnings estimates and a target price for Dixon Technologies
“We are cutting FY27E EPS by 7% on a likely delay in Vivo JV consolidation while raising FY28E EPS by 9% on faster scale-up in components. Maintain 'HOLD' with a Sep-27E target price of Rs 14,800 (from Rs 13,700) based on 50x Sep28E EPS. Dixon trades at 54x FY28E EPS.”
businesstoday.in
Sources
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