Dixon Technologies (India) Ltd SHARES RALLY 8.5%

DIXON *DIXON TECHNOLOGIES SHARES RALLY 8.5%:-* Shares of Dixon Technologies (India) Ltd surged 8.5% on Monday after leading brokerages, including UBS, Motilal Oswal and Nuvama, retained their positive outlook on the electronics manufacturing company following its Q2 FY27 results. Their target prices suggest a potential upside of up to 45% from Friday's closing level. The stock climbed to Rs 11,935 during morning trade, emerging as one of the top midcap gainers. Dixon Technologies' market capitalisation crossed Rs 72,900 crore. Despite Monday's strong rally, the stock remained down 1.4% year-to-date, outperforming the Nifty 50, which had declined 10.8% over the same period. For the September quarter, Dixon Technologies reported a 48.7% year-on-year decline in consolidated net profit. However, revenue increased 46.7% to Rs 21,794 crore. The decline in net profit was largely attributed to lower fair value gains on the company's investment in Aditya Infotech. EBITDA rose 6.4% year-on-year. However, profitability remained under pressure, with EBITDA margin declining to a multi-quarter low of 2.7% from 3.8% a year earlier. Gross margin also contracted to 5.1% from 7.1%. The company's mobile and other electronics manufacturing services segment continued to drive growth, generating revenue of Rs 20,093 crore in Q2, up 50% year-on-year. The segment contributed approximately 92% of Dixon's total revenue. Meanwhile, management retained its FY27 smartphone production volume guidance of 33-34 million units. The Vivo joint venture is expected to begin contributing to the company's performance from the fourth quarter of FY27.