Tue Jan 21 14:22:44 UTC 2025: ## Dixon Technologies Stock Plunges Despite Strong Quarterly Earnings

**Mumbai, January 22** – Shares of Dixon Technologies plummeted 14% on Tuesday, closing at ₹15,118, despite the company reporting robust December quarter earnings. While the company announced a 77.5% year-on-year increase in net profit to ₹171.19 crore and a nearly 117% rise in revenue to ₹10,453.68 crore, concerns over valuation overshadowed the positive results.

The significant drop reflects a divergence in analyst opinions. While Motilal Oswal maintained a ‘buy’ rating with a target price of ₹20,500, citing strong growth prospects in electronics manufacturing services (EMS) and new product segments, Nuvama Institutional Equities held a ‘hold’ rating, raising its target price to ₹18,790. Jefferies, however, issued an ‘underperform’ recommendation with a target price of ₹12,600, citing a high price-to-earnings ratio of 107 times for FY26.

Although the company exceeded expectations in revenue growth, a sequential decline in revenue and profit, coupled with higher depreciation, interest, and minority interest, dampened investor sentiment. The Consumer Electronics & Appliances Division showed a significant year-on-year revenue drop of 32%, contributing to the overall concern.

The conflicting analyst views highlight the uncertainty surrounding Dixon Technologies’ future performance, leaving investors to weigh the potential for future growth against current valuation risks.

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