Dixon Technologies shares rebound 10% from 52-week low; buy, sell or hold?

Shares of Dixon Technologies rose 5% in early deals on Friday after the Electronics Manufacturing Services (EMS) firm reported its Q3 earnings. Dixon Technologies  stock rose 4.91% to Rs 10,846 on BSE. Market cap of the firm stood at Rs 64,682 crore. However, the stock also hit a 52-week low of Rs 9,828 in early deals. Dixon Technologies stock recovered 10.53% from its 52 week low today. 

Turnover rose to Rs 81.61 crore as 0.79 lakh shares of the firm changed hands on BSE. 

Shares of Dixon Technologies are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day, and 200 day moving averages, signalling the trend is bearish for the market leader in its segment. 

The relative strength index (RSI) of Dixon Technologies stands at 26.4, signaling it's trading in the oversold territory.

Q3 earnings came in line with estimates of brokerages. 

Net profit rose 68% to Rs 282.7 crore in Q3 against Rs 171.2 crore a year ago. Revenue climbed 2% to Rs 10,671 crore in the last quarter against Rs 10,454 crore a year ago. EBITDA rose 6% to Rs 414 crore in Q3 against Rs 390 crore in the December 2024 quarter. 

However, Goldman Sachs raised its price target to Rs 10,000 from Rs 9950. 
It retained its call post Q3 earnings. 
The brokerage said mobile volumes were impacted by elevated DRAM pricing. 

Consumer electronics demand was muted due to inventory and BEE changes

It sees moderating in growth outlook for 2026 and expects earnings downgrade cycle to continue. The brokerage said customer stickiness was uncertain for the EMS firm. 

CLSA has a buy call on the stock with a price target of Rs 15,880. It said Q3 revenue decline of 28% QoQ was in line with estimates.

Smartphone sales were significantly affected due to elevated memory prices, a trend likely to pressure lower and mid-tier segments in Q4 as well. 

Dixon expects ECMS approvals for display modules and enclosures soon with the company witnessing some progress on margin-accretive backward-integration initiatives. CLSA believes that in the near term, Vivo PN3 approval, clarity on PLI extension & progress in other segments remain key catalysts.