Dixon Technologies

Dixon Technologies share Crash 20 percent

Shares of Dixon Technologies fell nearly 22 percent to hit a 52-week low of Rs 2,673.05 in the trading session on Friday after the company reported disappointing December quarter results. In the end, the stock closed with a decline of 19.19 percent.

The Dixon Technologies revenue declined 22 percent year-on-year to Rs 2,405 crore during the period due to sluggishness in mobile, consumer electronics, and lighting businesses. The revenue of these sectors slipped by 39 percent as compared to last year.

The slowdown in sales in the mobile segment was attributed to Motorola’s weak export sales and weak demand during the festive season. Revenue from the consumer electronics segment declined due to the lower selling price of LED TVs.

Another reason for the negative reaction to the stock is the estimate cut by the management. The management cut the FY23 sales forecast to Rs 12,200-12,700 crore from Rs 14-15 thousand crore. The sales estimate for FY23 was initially Rs 17-18 thousand crore. Analysts at Emkay Global Financial Services believe weakness in a few key segments is hurting the brand’s overall growth.


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