Shares of Dixon Technologies hit a record high on Friday post stellar Q2 earnings. The stock gained 6.21% to a high of Rs 15,999.95. However, it saw profit booking and slipped 13.33% to Rs 13,055.30 from the previous close of Rs 15,064.05 on BSE.
From the record high, the stock slipped 18.40% on BSE. Turnover was the highest at Rs 176.33 crore as 1.26 lakh shares of the firm changed hands on BSE. Market cap of the firm stood at Rs 84,653 crore.
"Dixon delivered a strong Q2FY25 with revenue soaring 133% YoY to INR115.34bn (29% above estimate) led by a 235% YoY surge in the mobile segment. EBITDA rose 113% YoY to INR4.26bn (22% above estimates) with margins at 3.7%, impacted by higher mobile mix.
PAT galloped 261% YoY to INR4.12bn boosted by investment gains while adjusted PAT jumped 123% YoY to INR2.55bn (20% above estimate). This showing underscores Dixon’s unparalleled operational execution," said Nuvama.
"We are raising FY25–27E EPS by up to 23% to reflect the Q2 performance and growth outlook. We now value Dixon at 65x Dec-26E EPS, yielding a target price of Rs 16,100; retain ‘HOLD’ given limited upside potential," added the brokerage.
Another brokerage Investec has a Buy call with target price of Rs 15,900. Investec has maintained a buy rating and hiked the target price to Rs 15,900 from Rs 12,700.