DixonTech shares fall to an 18-month low

Dixon Technologies, a major Indian electronics manufacturer, saw its shares fall sharply by over 6% on Monday, hitting their lowest level since June 2024. The drop came after the company posted its Q3 FY24 results, which disappointed investors. Despite a 25% year-on-year rise in revenue to ₹4,492 crore, the company’s net profit fell 18% to ₹61 crore. This decline was mainly due to higher expenses and weaker margins.

The market reacted negatively, with Dixon’s stock price falling to ₹5,097.05 on the NSE. Analysts noted that while the company’s top-line growth was strong, the bottom-line pressure raised concerns. The EBITDA margin dropped to 3.3% from 4.6% a year ago, which spooked investors.

Dixon’s market cap also took a hit, slipping below ₹30,000 crore. The company’s stock has now declined nearly 20% from its recent peak, raising questions about its near-term outlook. Some experts believe the long-term story remains intact, especially with Dixon’s strong position in electronics manufacturing and government support for local production. However, the short-term pressure on margins and profitability may keep the stock under pressure.

Investors are advised to watch upcoming quarters closely to see if Dixon can bounce back with better margins and stronger earnings.