Dixon Technologies jumps 4% on DAM Capital’s ‘buy’ call

Shares of Dixon Technologies rallied 4 percent high on September 26 buoyed by high volume trade and a positive brokerage outlook.

At the bourses nearly 9 lakh shares of the company exchanged hands against a monthly average of 4 lakh shares.

A ‘buy’ call on the consumer durable goods maker’s stock from DAM Capital seemed to have contributed to the upward move. Seeing a further upside potential from the current price levels, the brokerage has set the target price at Rs 6,000 per share.

“The company is participating in the union government’s production linked incentive (PLI) scheme for IT hardware. We also see strong traction of ramp up in mobile manufacturing. We recommend the company’s stock considering it’s robust execution capabilities along with investment in digitisation and research and development,” DAM Capital said.

At 2.30 pm on the NSE, the Dixon Technologies stock was quoting at Rs 5,083.50 apiece, up Rs 193.95, or 3.97 percent. The stock is currently in the consolidation phase since August 22nd.

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In its results for the April-June quarter, the company reported a 14.60 percent YoY (year-on-year) increase in revenue from operations at Rs 3,272 crore. Net profit for the quarter increased 48.88 percent YoY to Rs 67 crore. The operating profit margins for the quarter remained flat on a yearly basis to 4 percent.

Dixon Technologies is engaged in the business of electronic manufacturing services. The company specialises in manufacturing consumer electronics like LED televisions, washing machines, and mobile phones, as well as lighting products. It also offers solutions in the home appliances, security, and energy-efficient lighting segments.

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