The company reported a 72% rise in Q2 consolidated net profit to Rs 670 crore, up from Rs 390 crore a year ago. Revenue from operations grew 29% to Rs 14,855 crore, compared to Rs 11,534 crore in the same quarter last year.
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International brokerage firm Nomura has retained its Buy rating on the counter and assigned a target price of Rs 21,152 per share. That’s an upside potential of over 30% from the previous close. Dixon’s efforts to diversify its customer base and explore new growth avenues continue to support high growth visibility. “With the lighting unit moving into a joint venture, we have revised FY26/FY27/FY28 revenue estimates down by 5%, 2%, and 2%, respectively, but continue to expect an improvement in EBITDA margins from 3.8% in FY26 to 4.3% in FY27 and 4.8% in FY28,” Nomura said. Dixon currently trades at approximately 42x FY28 EPS, which remains attractive given its growth outlook, Nomura said.Motilal Oswal maintained a ‘Buy’ rating with a target of Rs 22,500, noting that Dixon’s Q2 revenue and PAT were largely in line with estimates. Motilal Oswal sees consumer durables demand recovering, which is expected to support further growth in the third quarter. The brokerage also emphasized Dixon’s ongoing focus on backward integration through component PLI initiatives and long-term joint ventures, which should improve efficiency and strengthen client relationships.
JM Financial gave an ‘Add’ rating for Dixon, stating that the Q2 results alleviated concerns about a potential slowdown in the mobile and EMS business. The brokerage noted that mobile and EMS revenue grew 41% YoY, while consumer electronics (-32%) and home appliances (-3%) remained weak due to deferred purchases following anticipated GST cuts.
While JM Financial slightly reduced FY26E EPS estimates due to higher finance costs and minority interest, FY27 and FY28 projections remain largely unchanged. The brokerage values Dixon at 60x Sep’27E EPS, arriving at a target price of Rs 18,000.
At about 11:55 am, shares of the company were trading at Rs 15,591, lower by 3.3% from the last close on the NSE. Dixon Tech shares are down 13.5% on a year-to-date basis.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)