Dixon Technologies reports doubled Q1 net profit, analysts predict continued growth

Mumbai: Shares of Dixon Technologies gained around 3% on Wednesday after the company's Q1 net profit doubled, prompting most brokerages to raise stock's target prices. Analysts expect earnings to continue to grow over the next couple of years. JP Morgan, which raised its price target to ₹19,500 from ₹17,700 after June quarter, said it expects the company's revenues to double by FY27.

"Growth will be driven by mobiles on the back of increased order book from its anchor customer and Vivo JV ramp-up from Q4FY26," said the brokerage. "Getting the iPhone order could be the icing on the cake and a significant further re-rating driver from here."

Dixon shares closed at ₹16,555 on Wednesday, off the day's high of ₹16,671. Brokerage Nomura said the approval for Longcheer JV for making and sale of smartphones could improve the company's market share prospects.


"With multiple component JVs ramping up, we expect margin tailwinds despite the production-linked incentive (PLI ) ending soon," said analysts at Nomura. Brokerage Goldman Sachs said that despite the growth prospects, there is limited potential for the company to surprise, citing pricey valuations. The brokerage said the stock is trading at 80 times PE ratio as against 12-14 times of global peers.