Shares of Dixon Technologies hit a record high on Friday, crossing the mark of ₹10,000 for the first time. The stock has now gained in four of the five trading sessions this week. With Friday's surge, Dixon's market capitalisation is now nearing the mark of ₹60,000 crore.
Shares of Dixon Technologies had earlier touched levels of ₹20,000, before the company had carried out a stock split, dividing one share of ₹10 into five shares of ₹2 each in 2021. The stock has now crossed the mark of ₹10,000 on a post-split basis.
On Thursday, the company entered into a term sheet with HKC Corp Ltd. to form a Joint Venture to manufacture and sell products.
The JV will manufacture LCM and TFT-LCD Modules and assemble end products such as smartphones, TVs, monitors, and auto displays. Dixon will also sell HKC-branded end products in India, subject to necessary statutory approvals and the signing of definitive agreements.
After a 9% drop in January this year, shares of Dixon have now gained for five months in a row. The stock is now up 55% so far in 2024, having gained nearly 70% in 2023. Dixon has given negative annual returns only twice since its listing - once in 2018, when the stock had halved, and the other in 2022, when it fell by 30%. Else, the stock has risen 84% in 2019, 254% in 2020, and 104% in 2021.
At current levels, Dixon Technologies is trading at a financial year 2026 price-to-earnings multiple of 66 times, which is still below its five-year average price-to-earnings ratio of 97 times.
“I would like to remain invested. It is a very narrow investment theme and there are very few choices within that space and liquidity on the counter is very tight because of the loyalty of the shareholders and in a lot of institutional investments as well. Although the stock is expensive on a PE multiple basis, and this quarter has been slightly disappointing, I would still give some more time and remain invested in the company. I think it's got some more legs," Dipan Mehta of Elixir Equities told CNBC-TV18 on May 16 this year.
Of the 29 analysts that have coverage on Dixon Technologies, 17 have a "buy" rating, while four say "hold." The other eight analysts have a "sell" recommendation on the stock. BNP Paribas has the highest price target on the stock at ₹11,000, while Ambit has the lowest target on the stock at ₹5,757.
Promoters of Dixon held a 33.44% stake in the company as of the March-end quarter. Mutual Funds of India hold an 18.39% stake, with HDFC and Nippon holding close to 3% of the company. India's largest insurance company, Life Insurance Corporation of India (LIC) also has a 2.7% stake in Dixon. Foreign Portfolio Investors (FPIs) together hold a 17.84% stake in the company.
Shares of Dixon Technologies are now trading 2.5% higher at ₹10,008. The stock has nearly tripled from its 52-week low of ₹3,875.
Shares of Dixon Technologies had earlier touched levels of ₹20,000, before the company had carried out a stock split, dividing one share of ₹10 into five shares of ₹2 each in 2021. The stock has now crossed the mark of ₹10,000 on a post-split basis.
On Thursday, the company entered into a term sheet with HKC Corp Ltd. to form a Joint Venture to manufacture and sell products.
The JV will manufacture LCM and TFT-LCD Modules and assemble end products such as smartphones, TVs, monitors, and auto displays. Dixon will also sell HKC-branded end products in India, subject to necessary statutory approvals and the signing of definitive agreements.
After a 9% drop in January this year, shares of Dixon have now gained for five months in a row. The stock is now up 55% so far in 2024, having gained nearly 70% in 2023. Dixon has given negative annual returns only twice since its listing - once in 2018, when the stock had halved, and the other in 2022, when it fell by 30%. Else, the stock has risen 84% in 2019, 254% in 2020, and 104% in 2021.
On the charts, Dixon is yet to enter overbought territory with its Relative Strength Index (RSI) at 65. A reading above 70 on the RSI indicates that the stock is in "overbought" territory.
At current levels, Dixon Technologies is trading at a financial year 2026 price-to-earnings multiple of 66 times, which is still below its five-year average price-to-earnings ratio of 97 times.
“I would like to remain invested. It is a very narrow investment theme and there are very few choices within that space and liquidity on the counter is very tight because of the loyalty of the shareholders and in a lot of institutional investments as well. Although the stock is expensive on a PE multiple basis, and this quarter has been slightly disappointing, I would still give some more time and remain invested in the company. I think it's got some more legs," Dipan Mehta of Elixir Equities told CNBC-TV18 on May 16 this year.
Of the 29 analysts that have coverage on Dixon Technologies, 17 have a "buy" rating, while four say "hold." The other eight analysts have a "sell" recommendation on the stock. BNP Paribas has the highest price target on the stock at ₹11,000, while Ambit has the lowest target on the stock at ₹5,757.
Promoters of Dixon held a 33.44% stake in the company as of the March-end quarter. Mutual Funds of India hold an 18.39% stake, with HDFC and Nippon holding close to 3% of the company. India's largest insurance company, Life Insurance Corporation of India (LIC) also has a 2.7% stake in Dixon. Foreign Portfolio Investors (FPIs) together hold a 17.84% stake in the company.
Shares of Dixon Technologies are now trading 2.5% higher at ₹10,008. The stock has nearly tripled from its 52-week low of ₹3,875.
First Published: Jun 7, 2024 11:39 AM IST
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