Dixon Technologies shares have been on an upward trajectory for nearly a year, witnessing a remarkable rise from around ₹2,893 to ₹7,626.90 per share on the NSE, marking a staggering 160 percent rally during this period. This electronic manufacturing services company has emerged as one of India’s multibagger stocks, and despite its significant gains, analysts suggest that there may still be further upside potential.
The stock opened on a positive note today and reached an intraday high of ₹7,626.90 per share, setting a new record high for the fourth consecutive session.
Experts point out that Dixon Technologies shares are attractively valued, with a price-to-earnings (PE) multiple of 17 compared to the industry PE of 14. Furthermore, the company boasts a robust balance sheet, bolstering investor confidence. However, concerns have been raised regarding the growth of the company’s non-core business segments.
Technically, Dixon Technologies shares have shown strength on the charts, recently breaking out at ₹7,236 per share. Analysts recommend maintaining a trailing stop loss at ₹7,200 per share for existing investors and targeting a short-term price of ₹8,130 per share.
For prospective investors, a buy-on-dips strategy is advised, with a strict stop loss at ₹6,750 per share for a short-term target of ₹8,130 per share.
In terms of shareholding, mutual funds hold a significant stake in Dixon Technologies, with renowned institutions such as PGIM India, Nippon India, Kotak Emerging Equity Scheme, and HDFC Mutual Fund among the major investors. Additionally, DIIs like Life Insurance Corporation (LIC) of India, Max Life Insurance, and ICICI Prudential Life Insurance have substantial equity exposure in the company.
Foreign Portfolio Investors (FPIs) also hold a notable stake in the company, with Mauritius-based Steadview Capital being a significant investor.
Disclaimer: Investors are advised to conduct thorough research and consult certified experts before making any investment decisions, as the views and recommendations provided are those of individual analysts or broking firms.
