Dixon Technologies Shares Rebound Strongly
On Thursday, December 11, Dixon Technologies shares experienced a significant recovery. Despite opening lower and initially slipping to a 52-week low of ₹12,130, the stock rapidly regained momentum, surging 6.6% to reach a high of ₹12,928. This marked the stock's largest single-day gain since early September.
Market Trends and EMS Companies
The recent performance of Electronic Manufacturing Services (EMS) companies, including Kaynes Technology, has been influenced by market volatility and selling pressure. Despite long-term growth prospects, EMS stocks have faced significant challenges in regaining investor confidence.
- Kaynes Technology experienced a sharp fall after Kotak Institutional Equities raised concerns about its financial disclosures.
- Nomura and Kotak have cut their target prices for Kaynes Technology, further impacting investor sentiment.
Dixon Technologies Q2 2025 Performance
For the quarter ended September, Dixon Technologies reported an 81% increase in consolidated net profit to ₹746 crore, driven by a significant rise in other income. Adjusted for one-time gains, the company's net profit stood at ₹323 crore, with 29% year-on-year revenue growth and 34% operating profit increase.
While EMS companies face short-term challenges, their long-term outlook remains positive. As the market navigates volatility and uncertainty, investors are advised to consult with certified experts before making any investment decisions.