Shares of Dixon Technologies gained 5% on Wednesday morning after the electronics manufacturer reported strong results in the June quarter. 

What Happened: Dixon Technologies in its June quarter results reported a 108% year-on-year increase in net profit to ₹139.91 crore, compared with ₹67.06 crore in the year-ago period.

Its revenue from operations went up 101% to ₹6,579.80 crore from ₹3,271.50 crore. EBITDA grew 90% to ₹256 crore from ₹135 crore in the previous year, while EBITDA margin fell to 3.9% from 4.1% in the previous year.

Mobile and electronics manufacturing service (EMS) business revenue increased 189% from the previous year to ₹5,192 crore. Consumer electronics and appliances revenue fell 3% to ₹855 crore, while home appliances revenue jumped 18% to ₹305 crore. 

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Brokerage Views: Nuvama retained "hold" with a target price of ₹12,000. The research firm raised FY25 and FY26 net profit estimates by 13% and 16% on the back of upward revision in customer additions and increase in execution.

The company forecast 2.8 to 3 crore smartphones, with its overall operating margin at 3.9% and mix favouring mobile and EMS business, Nuvama noted. Even though the company is one the road towards capturing 50% of India's outsourced mobile market, there is higher execution risk, the research firm said. 

CLSA downgraded to "hold" with a target price of ₹11,400. The brokerage said the company's strong momentum in Q1 results is likely to continue.

The mobile phone segment is likely to remain the firm’s mainstay in the near term, the brokerage said. Existing contracts and new client onboarding is likely to increase and company's entrance into IT hardware segment and mobile components will provide company strong medium-term growth, it added. 

Price Action: Shares of Dixon Technologies rose 5.94% to an intraday high of ₹12,690 on Wednesday morning. 

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