Dixon Technologies plummeted over 12% on Friday after hitting a 52-week high on the back of strong second-quarter results.

What Happened: The electronics manufacturing company posted a whopping 265% jump in its net profit to ₹412 crore, while revenue soared 133 % to ₹11,528 crore.

Shares of the company hit a 52-week high of ₹15,900 on Friday after stellar Q2 results. However, the shares have since been on a downward slope as investors booked their profits.

Nomura maintained a “buy” recommendation for Dixon Technologies with a target price of ₹18,654. The company reported strong performance in the second quarter, driven by its mobile segment, while its position as a major player in IT hardware and components presents a significant long-term opportunity, the brokerage noted.

Nomura has raised its revenue estimates by 10%, 8%, and 5% for FY25, FY26 and FY27, respectively, and adjusted earnings per share projections upward by 3% to 5%.

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Dixon’s strong Q2 performance was backed by its mobile business, Systematix Institutional Equities said. The company’s mobile order book is robust, the brokerage noted.

Following a strong second quarter and updated guidance, Systematix has upgraded its earnings projections by 30% to 70% due to a substantial revision in revenue forecasts.

It now expects a compound annual growth rate (CAGR) of 64% in revenue, 61% in EBITDA and 74% in net profit from FY24 to FY27, while maintaining a stable EBITDA margin of 3.7%. Systematix maintained a “hold” rating on the stock with a revised target price of ₹16,474.

In Talks For More: Dixon reported better-than-expected results, driven by strong performance in its mobile and EMS segments, along with the integration of Ismartu from mid-August, Motilal Oswal said.

Dixon is benefiting from high volumes with existing mobile customers and is reportedly in talks to add another global brand, the brokerage said.

The research firm added company’s partnership with HKC Corp for display manufacturing will allow it to capture a larger share of the bill of materials for mobile devices and LED TVs and Dixon is also exploring collaborations with global players for open cell manufacturing, the brokerage noted.

Consequently, Motilal Oswal has revised its estimates by 13%, 5% and 5% for FY25, FY26 and FY27, respectively. It reiterated a “buy” rating for Dixon and hiked the target price to ₹17,500.

Price Action: Shares of Dixon Technologies nosedived 12.16% to ₹13,224.70 on Friday morning.

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