Shares of digital manufacturing providers firm Dixon Applied sciences share worth staged a powerful restoration in Thursday’s session, December 11. The inventory opened decrease and even slipped to a 52-week low of ₹12,130 apiece, however shortly regained momentum, surging 6.6% from the day’s low to the touch a excessive of ₹12,928. This additionally marked the inventory’s largest single-day achieve since early September.
This comes after the inventory had been underneath vital promoting strain since mid-November. Though it has tried a rebound, it nonetheless trades practically 32.5% beneath the 1-year peak of ₹19,148 apiece.
Over the previous few periods, EMS-related corporations have witnessed heavy promoting, triggered largely by the sharp fall in Kaynes Expertise after Kotak Institutional Equities flagged inconsistencies in its FY2025 disclosures. The report sparked panic regardless of administration clarifications.
A number of goal worth cuts for Kaynes have additional dented sentiment, making EMS shares among the largest casualties within the current market sell-off. Japanese brokerage Nomura trimmed its goal worth for Kaynes to ₹5,400 per share from ₹8,400 earlier, whereas Kotak lowered its goal to ₹4,100 from over ₹6,000 beforehand.
Although the long-term outlook for EMS corporations stays sturdy, short-term headwinds have led to a pointy correction throughout the phase. As soon as identified for his or her regular rally and multibagger returns, these shares are actually discovering it difficult to regain investor confidence amid the continued volatility.
Dixon Applied sciences Q2 2025 efficiency
For the quarter ended September, the corporate reported an 81% bounce in consolidated web revenue to ₹746 crore, up from ₹412 crore in the identical interval final yr. The surge was largely pushed by a pointy rise in different earnings to ₹496 crore, which included ₹465 crore from the sale of the corporate’s stake in Aditya Infotech Ltd and a ₹28 crore achieve from the switch of its lighting enterprise endeavor.
Adjusted for these one-time beneficial properties, the corporate’s web revenue stood at ₹323 crore. On the highest line, adjusted income from operations got here in at ₹14,858 crore, marking a 29% year-on-year improve. Working revenue rose 34% YoY to ₹564 crore, with margins increasing by 20 foundation factors to three.8%.
Disclaimer: The views and suggestions made above are these of particular person analysts or broking corporations, and never of Mint. We advise buyers to examine with licensed specialists earlier than making any funding selections.
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