Dixon Technologies continues to showcase strong revenue growth, primarily driven by its Mobile and EMS segments, even as challenges persist in consumer appliances. Nuvama Institutional Equities has maintained a “Hold” rating on the stock with a target price of ₹18,790.
Key Insights from Nuvama:
- Revenue Performance:
- Dixon’s revenue surged 117% YoY, largely supported by robust growth in the Mobile and EMS segments.
- Revised Estimates:
- FY25-27 estimates have been trimmed by 3%-7% due to:
- Ismartu consolidation.
- Partnership challenges with Vivo JV.
- Muted demand in consumer appliances.
- FY25-27 estimates have been trimmed by 3%-7% due to:
- Strategic Moves:
- Dixon plans to venture into display fab manufacturing, leveraging government incentives.
Current Market Price (CMP):
At ₹17,520.50, Dixon trades below Nuvama’s target price, reflecting a moderate upside potential for investors.
Outlook: While Dixon’s topline growth remains impressive, near-term pressures in consumer appliances and partnership execution have tempered optimism. The move into display fab manufacturing could open up new growth avenues in the long term.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a financial advisor before making investment decisions.
