Dixon Technologies' shares took a hit, dropping around 4%, as the company announced a slowdown in growth for FY25 due to its ongoing ramp-up phase. This anticipated deceleration comes as Dixon Tech adjusts its strategies and expands its operations, positioning itself for future gains. As an investor keeping a close eye on market fluctuations, it's essential to stay informed, especially if you're considering buying stocks online.
Despite the current slowdown, Dixon Technologies is targeting a revenue of ₹3,500 crore for FY25, with ambitious plans to scale up to ₹48,000 crore over the next six years, specifically in the IT hardware segment. The company is in advanced discussions with two major global original equipment manufacturers (OEMs) for server contracts, a move that aligns with its broader growth strategy. For those interested in buying stocks online, such strategic focus could offer insights into Dixon's long-term potential.
Dixon Tech's mobile segment continues to be a significant driver of the company's growth, with projections indicating it will contribute 70% of the revenue for FY24-25. According to Vice Chairman and Managing Director Atul Lall, the margin profile for laptops and notebooks is comparable to that of mobile devices, ranging between 3.5% and 4%.
This highlights the crucial role the mobile segment plays in the financial health of the company. Investors looking to capitalize on growth trends may want to consider buying stocks online in companies like Dixon that are heavily invested in mobile technology.
Despite the recent dip, Dixon Tech's stock has shown strong performance over the past year, gaining around 96% in 2023, far outpacing Nifty's 16% return. Over the last 12 months, Dixon has delivered a staggering 147% return, more than doubling investors' money compared to Nifty's 30% rise during the same period.
With Dixon Tech recently added to the MSCI Global Standard Index and attracting significant passive inflows, now might be an opportune time to consider buying stocks online, particularly for those seeking to invest in a company with a proven record of resilience and growth.
Motilal Oswal, a leading brokerage, has observed that Dixon Tech is currently in a strong uptrend, trading above its short-term moving averages. The stock has been a standout performer in the midcap space, leading analysts to recommend buying the stock with a stop-loss below ₹12,650 on a closing basis, aiming for a new lifetime high target towards ₹14,250 zones. For those exploring options for buying stocks online, Dixon Tech presents a compelling opportunity, given its steady market position and growth potential.
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