The semiconductor stock is gaining attention as it sets ambitious targets for substantial growth in the coming years. With a focus on achieving a 35-40 percent increase in topline revenue, the company is poised to capitalize on rising demand and technological advancements, positioning itself for strong future performance in a rapidly evolving market.
Share Price Variation
During Friday’s trading session, the share price of Dixon Technologies (India) Ltd reached an intra-day high of Rs.13,598.00 per share, rising 3.96% from its previous close of Rs.13,078.95 per share. However, the stock declined later to Rs.13,324.05 each. Over the past five years, the shares have delivered over 1,575 percent returns.
Future OutlookÂ
Saurabh Gupta, CFO of Dixon Technologies, expressed confidence in the company’s growth prospects, forecasting a 35-40 percent revenue increase over the next 3-4 years, driven by mobile and IT hardware. He emphasized that the company is focusing on backward integration, which will contribute to margin expansion.Â
With only 5 percent of Dixon’s revenue coming from the US, Gupta believes that India’s competitive advantage in the electronics sector will benefit the company significantly. Gupta also stated that the company does not anticipate significant impact from reciprocal tariffs on electronic products.Â
He highlighted that while India’s electronics exports to the US are currently at just 2-3 percent, compared to China’s 35 percent, there is ample opportunity for growth. Dixon Tech is well-positioned to capitalize on this potential, benefiting from India’s favorable market dynamics. The company is expanding its manufacturing capabilities to meet rising demand from brands like Tecno, Infinix, iTel, and Motorola, and many others.
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Earnings Report
According to its recent financial updates, Dixon Technologies (India) Ltd reported remarkable consolidated revenue of Rs.10,454 crores in Q3 FY25, marking a 117 percent increase from Rs.4,818 crores in Q3 FY24. In addition, the company saw an exceptional surge in net profit, rising by 122 percent to Rs.216 crores, compared to Rs.97 crores in the same period last year.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 27.2 percent and a Return on Equity (ROE) of 24.77 percent. Its Price-to-Earnings (P/E) ratio stands at 125.85, higher than the industry average of 74.31. Furthermore, the company maintains a current ratio of 1.04, a debt-to-equity ratio of 0.36, and an Earnings Per Share (EPS) of Rs.104.32.Â
About the Company
Dixon Technologies is a leading EMS company in India, offering design-focused solutions across diverse product categories, including consumer electronics, home appliances, lighting, mobile phones, IT hardware, and security devices.
Written by – Siddesh S Raskar
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