Shares of electronic manufacturing services company Dixon Technologies share price staged a strong recovery in Thursday’s session, December 11. The stock opened lower and even slipped to a 52-week low of ₹12,130 apiece, but quickly regained momentum, surging 6.6% from the day’s low to touch a high of ₹12,928. This also marked the stock’s biggest single-day gain since early September.
This comes after the stock had been under significant selling pressure since mid-November. Although it has attempted a rebound, it still trades nearly 32.5% below the 1-year peak of ₹19,148 apiece.
Over the past few sessions, EMS-related companies have witnessed heavy selling, triggered largely by the sharp fall in Kaynes Technology after Kotak Institutional Equities flagged inconsistencies in its FY2025 disclosures. The report sparked panic despite management clarifications.
Multiple target price cuts for Kaynes have further dented sentiment, making EMS stocks some of the biggest casualties in the recent market sell-off. Japanese brokerage Nomura trimmed its target price for Kaynes to ₹5,400 per share from ₹8,400 earlier, while Kotak lowered its target to ₹4,100 from over ₹6,000 previously.
Though the long-term outlook for EMS companies remains strong, short-term headwinds have led to a sharp correction across the segment. Once known for their steady rally and multibagger returns, these stocks are now finding it challenging to regain investor confidence amid the ongoing volatility.
Dixon Technologies Q2 2025 performance
For the quarter ended September, the company reported an 81% jump in consolidated net profit to ₹746 crore, up from ₹412 crore in the same period last year. The surge was largely driven by a sharp rise in other income to ₹496 crore, which included ₹465 crore from the sale of the company’s stake in Aditya Infotech Ltd and a ₹28 crore gain from the transfer of its lighting business undertaking.
Adjusted for these one-time gains, the company’s net profit stood at ₹323 crore. On the top line, adjusted revenue from operations came in at ₹14,858 crore, marking a 29% year-on-year increase. Operating profit rose 34% YoY to ₹564 crore, with margins expanding by 20 basis points to 3.8%.
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