Sharekhan's research report on Dixon Technologies
Overall revenue growth of 133% was led by strong performance in mobiles & EMS (235%), home appliances (22%) and Lightning products (29%) division. Operating profits were higher by 114% to Rs 426 crore, with OPM falling 33 bps. OPM declined on higher contribution from low-margin Mobile & EMS segments. Consolidated Adjusted PAT grew by 78% led by growth in revenues. Expect the mobile & EMS division to sustain high growth momentum for FY2026-27 on the base of strong orders from existing clients, new client onboarding. Lighting remains affected by price erosion and market shrinkage.
Outlook
We upgrade Dixon Technologies to Buy with a revised PT of Rs. 16,800 factoring in strong revenue/PAT CAGR of 66%/84% over FY24-FY27E. Stock currently trades at 62x/40x its FY206E/FY2027E earnings, respectively.
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