On January 15, Dixon Technologies could attract attention from investors. A well-known brokerage firm called Emkay has started covering the stock and given it a ‘buy’ rating with a target price of Rs 20,000. This means they believe the stock can grow by 22%.
Emkay praised Dixon Technologies for its strong growth potential. They highlighted that Dixon leads in many products and is expanding into new areas, which is a big advantage. The company is also improving its profit margins by making more of its own products, allowing for more sales and even international sales.
One exciting area for Dixon is the industrial PCB and auto electronics market, which is projected to be huge — around Rs 4 lakh crore by FY35E. Emkay thinks Dixon can capture a significant share of the smartphone assembly market, potentially increasing its market share from 25% to about 44% within a few years, with current market prices underestimating this growth.
In terms of financials, Emkay expects Dixon to see a 20% increase in sales and a 40% increase in earnings per share from FY25E to FY35E. Their earnings estimates for FY27E are 17% higher than what others expect right now.
Emkay believes that Dixon’s high stock price is justified by its strong future prospects, with a projected value of 41 times its earnings by December 2026.
In the past year, Dixon Technologies’ stock price has risen by a remarkable 148.37%, while it increased by 31.15% over the last six months. On Tuesday, the stock closed at Rs 16,275.85, which is a 1.8% increase.
The overall consensus from 26 analysts is a ‘Buy’ recommendation on Dixon Technologies. Among these analysts, 11 suggest a strong buy, 4 suggest a buy, 4 say hold, and 3 recommend a sell, while there are 4 strong sells.
(Disclaimer: The views and recommendations are based on expert opinions and do not reflect the views of Niftystat.)
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