Dixon Technologies (India) Ltd shares surged 8.5 percent on Monday after UBS, Motilal Oswal and Nuvama maintained bullish outlooks on the electronics manufacturer following its Q2 FY727 results, with target prices indicating an upside of up to 45 percent from Friday's closing price.
Dixon Technologies shares climbed to Rs 11,935 in morning trade, making the stock one of the top midcap gainers. The company's market capitalisation stood at over Rs 72,900 crore. Despite Monday's rally, Dixon shares remained down 1.4 percent year-to-date, compared with a 10.8 percent decline in the Nifty 50.
The brokerage optimism follows Dixon's Q2 FY27 results, which showed strong revenue growth but pressure on operating margins. Analysts expect the company's Vivo joint venture, new smartphone customers, exports and expansion into component manufacturing to drive earnings growth over the next few years.
Dixon reported a 48.7 percent year-on-year decline in consolidated net profit to Rs 343.7 crore for the September quarter, compared with Rs 670 crore a year earlier. Revenue increased 46.7 percent to Rs 21,794 crore, exceeding the CNBC-TV18 poll estimate of Rs 20,235 crore. The decline in reported profit largely reflected a lower fair value gain on Dixon's stake in Aditya Infotech.
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