Dixon Technologies Stock Review
Dixon Technologies Share Price: The company's net profit increased by 25% to Rs 98.5 crore in the March quarter.
Dixon Technologies Share Price: Shares of Dixon Technologies rose by a huge 10 percent during trading today on May 17 and the shares reached their new high of Rs 9,062.
This rise in the company's shares came after the news of rating increase by foreign brokerage firm Morgan Stanley.
The brokerage has increased the rating of the stock to 'equal-weight', which was earlier 'underweight'. Also, he has given a target price of Rs 8,696 to the stock. It should be noted here that the stock has already achieved the target price given by Morgan Stanley.
Morgan Stanley has estimated an annual growth of 42 percent in the company's earnings during the financial year 2024 to 2028 and this is the main reason behind increasing the rating.
Additionally, the brokerage said Dixon Technologies has gained good mobile customers in the last six months.
The company plans to invest up to $30 million to make display modules for mobile devices.
However, Morgan Stanley also raised concerns about the company's ability to deliver accurate targets and maintain low working capital levels.
Dixon Technologies' March quarter results were below market expectations. The company's operating profit margin declined by 1.10 percent during the month of March.
This was due to increase in the contribution of low margin mobile and EMS business.
The contribution of this segment to the company's revenue increased to 66 percent, which was 46 percent in the same quarter a year ago.
The company's net profit in the March quarter increased by 25 percent year-on-year to Rs 98.5 crore. Its revenue during this period increased by 52 percent to Rs 4,658 crore, which was Rs 3,065 crore in the same quarter of the last financial year.
At the end of trading, shares of Dixon Technologies closed at Rs 8,940, up 8.23 per cent.
Since the beginning of this year, shares of Dixon Tech have increased by about 38.38 percent. In the last one year, this stock has given a multibagger return of 199.63 percent to its investors.