“Motilal Oswal Financial Services highlighted potential risks such as slower-than-anticipated market growth, loss of key client relationships, heightened competition, and limited bargaining power with clients.”
Shares of Dixon Technologies (India) fell 10 percent, hitting the lower circuit at ₹15,804, after reporting a sequential decline in consolidated net profit and revenue for the quarter ending December. In Q3 FY25, the company’s net profit plummeted 47.5 percent year-on-year to ₹216 crore, compared to ₹411.7 crore in Q3 FY24. Revenue for the quarter also dropped over 9 percent to ₹10,453.7 crore. Year-to-date, the stock has declined 12 percent, significantly underperforming the Nifty 50 index, which slipped 1.5 percent during the same period.
Jefferies maintained an “Underperform” rating on Dixon with a target price of ₹12,600, citing a 32 percent year-on-year decline in consumer electronics sales. The brokerage expressed concerns over Dixon’s valuation, noting that its “risk-reward seems stretched at 107x FY26 PE.” Similarly, Motilal Oswal Financial Services flagged risks such as slower market growth, potential loss of key clients, increased competition, and limited bargaining power with customers.
In contrast, Nuvama Institutional Equities raised its target price for Dixon to ₹18,790 from ₹16,400 while maintaining a “Hold” rating. “While we admire Dixon’s exceptional execution and future prospects, we maintain ‘Hold’ and await a better price point for entry,” the brokerage stated. However, it reduced its FY25E/26E/27E PAT estimates by 3 percent, 5 percent, and 10 percent, respectively, citing weaker TV performance, the Vivo joint venture, and the full consolidation of Ismartu.
Dixon entered a joint venture with Vivo in December 2024 and plans to explore Display Fab manufacturing, contingent on receiving government incentives.
