Dixon Technologies (India) Stock Surges 10% to Record High: Morgan Stanley Upgrade and Analyst Views

Dixon Technologies (India) Stock Surges 10% to Record High After Morgan Stanley Upgrade

Shares of Dixon Technologies (India) soared nearly 10 percent in intra-day trading on Friday, reaching a record high of ₹9,064 per share. This surge came after global brokerage firm Morgan Stanley upgraded the stock from ‘underweight’ to ‘equal-weight’ following the company’s strong performance in the March quarter.

Morgan Stanley cited an expected earnings compound annual growth rate (CAGR) of 42 percent for Dixon Technologies from FY24 to FY28 as the reason for the upgrade. The brokerage also highlighted the company’s onboarding of large mobile customers and its plans to invest $30 million in manufacturing display modules for mobiles as positive factors.

Despite the upgrade, Morgan Stanley set a target price of ₹8,696 for the stock, implying a 4 percent downside from its record high. Other brokerages, such as Jefferies and Kotak Institutional Equities, maintained a cautious view on Dixon Technologies, with target prices indicating significant downside potential.

Dixon Technologies reported a 25 percent year-on-year increase in net profit for the March quarter, along with a 52 percent YoY increase in revenue from operations. The company’s operating EBITDA also saw a 17.3 percent YoY increase, although margins experienced a slight decline.

In addition to its financial performance, Dixon Technologies announced a partnership with Acerpure Indian CE to manufacture a range of consumer appliance products, starting with advanced TVs. This move is aligned with the ‘Make in India’ initiative and aims to enhance India’s self-sufficiency and global competitiveness in electronics.

Investors are advised to consult with certified experts before making any investment decisions based on the views and recommendations of individual analysts or broking companies.