Dixon Technologies’ stock dropped by around 4% after the company announced that growth in FY25 will be slower due to its current phase of expansion. The company is targeting ₹3,500 crore in revenue for FY25, with plans to reach ₹48,000 crore in the IT hardware segment over the next six years. Dixon is also in talks with two major global companies about server contracts.
Vice Chairman and Managing Director Atul Lall shared that the company’s mobile segment is a key growth driver, expected to contribute 70% of Dixon’s revenue for FY24-25. The profit margins for laptops and notebooks are similar to those for mobile devices, highlighting the importance of this segment to Dixon’s overall financial performance.
Dixon Technologies has been added to the MSCI Global Standard Index and is expected to attract significant passive investments, estimated at $257 million. Recently, UBS Principal Capital Asia Ltd. sold 6.86 lakh shares (1.15% stake) in Dixon Technologies for ₹904.12 crore through open market transactions.
As of 10:21 am, Dixon shares were trading 3.8% lower at ₹12,666.05 on the NSE. Despite the recent drop, the stock has gained about 96% so far this year, outperforming the Nifty index, which returned 16%. Over the last 12 months, Dixon’s stock has surged 147%, more than doubling investors’ money, compared to Nifty’s 30% rise.
Motilal Oswal noted that Dixon Tech is in a strong uptrend, trading above its short-term moving averages, and has performed well within the midcap space. The brokerage advises investors to buy the stock with a stop loss below ₹12,650, aiming for a new high of ₹14,250.
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