Dixon Technologies share price rises over 3% after Q2; is the stock buy-worthy?
BSE on Friday, October 27, a day after the company reported its July-September quarter (Q2) earnings. Dixon Tech share price opened at ₹5,458.05 against the previous close of ₹5,341.10 and soon rose 3.2 per cent to hit the intraday high of ₹5,513.35 in trade so far. The stock, however, cooled off and traded 1.56 per cent higher at ₹5,424.20 around 10 am on BSE.
Dixon Technologies share price hit its 52-week high of ₹5,607.45 last Monday (October 23) and its 52-week low of ₹2,554.95 on January 30 this year. As of the last traded price, the stock has gained about 109 per cent from its 52-week low. After market hours on October 26, Dixon Tech reported a standalone profit of ₹57.25 crore in Q2FY24, down 2.7 per cent against a profit of ₹58.82 crore in the same quarter last year.
Revenue from operations for the said quarter fell 9.6 per cent year-on-year (YoY) at ₹2,072.58 crore against ₹2,293.40 crore in the same quarter last year. (Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) Brokerage firms largely maintained their views on the stock after the company's September quarter earnings.
Nuvama Wealth Management has retained its hold rating on the stock on rich valuations but raised the target price to ₹5,150 from ₹3,925. "We are positive on Dixon’s growth trajectory; however at 50 times PE (price-to-earnings ratio) on FY26E, the valuations do not indicate a good entry point in our view. We are raising FY24 and FY25 PAT estimates by 8 per cent and 25 per cent, respectively," said Nuvama.
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