Dixon Share Price
Shares of Dixon Technologies fell 10% to ₹15,806 per share on January 21 despite a strong performance in the December quarter (Q3FY25), as valuation concerns impacted financial results.
The company reported a 77.5% year-on-year rise in consolidated net profit to ₹171.19 crore from ₹96.44 crore in Q3FY24.
However, sequentially, net profit declined 56%, impacted by higher depreciation, interest and minority interest. Revenue grew 117% year-on-year to ₹10,453.68 crore, but fell 9.4% from the September quarter.
EBITDA grew 113% year-on-year to ₹398 crore, while EBITDA margin stood at 3.7%, slightly lower than 3.8% in Q3FY24. Revenue from the Consumer Electronics and Appliances division declined 32% year-on-year and over 50% sequentially to ₹633 crore, while operating profit fell 31% year-on-year to ₹22 crore.
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The Home Appliances segment grew 9% year-on-year to ₹315 crore but declined 29% sequentially. Lighting Products revenue grew 7% year-on-year to ₹201 crore but declined 14% quarter-on-quarter.
Motilal Oswal retains its “Buy” rating with a target price of ₹20,500, citing strong growth potential in emerging segments such as EMS and wearables, hearables and telecom networking products.
The brokerage projects a PAT CAGR of 60% from FY24 to FY27, led by backward integration and improved margins.
Nuvama Institutional Equities maintained a “hold” rating, raising its target price to ₹18,790. Jefferies reiterated its “underperform” recommendation with a target price of ₹12,600, citing stretched valuations at 107 times FY26 price-to-earnings.
While analysts acknowledge Dixon’s long-term growth potential, near-term concerns over high valuations and declining margins in key segments continue to weigh on investor sentiment.
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