Dixon Technologies Shares Gain After MSCI Inclusion

Shares of Dixon Technologies (India) Ltd. gained over 3% on Tuesday after MSCI Inc. listed the stock in its global gauge for emerging markets in its August review. The global index provider upgraded the Dixon Technologies stock to mid-cap from the earlier small-cap status.

Dixon Technologies was among three companies, along with Phoenix Mills Ltd. and PB Fintech Ltd., to be upgraded from small to mid-cap section in the latest MSCI review.

The stock of the electronics component manufacturer had a Performa index weightage of 0.28%.

MSCI India Domestic Indexes saw seven additions and no deletions in the August review.

Late last month, Dixon Technologies (India) Ltd. reported a sharp spike in its revenue and net profit for the first quarter of FY25, surpassing the estimates by analysts.

• Revenue up by 101.1% at Rs 6,588 crore versus Rs 3,274 crore.

• Ebitda is up by 90% at Rs 256 crore against Rs 135 crore.

• Operating profit margin 3.8% versus 4%.

• PAT up 109% at Rs 140 crore against Rs 67 crore.

Shares of Dixon Technologies rose 3.34% before paring some gains to trade 3.03% higher at Rs 352.90 per share as of 11:31 a.m., compared to a 0.05% gain in the NSE Nifty 50.

The stock has risen 158.36% in the last 12 months and 82.96% year-to-date. Total traded volume so far in the day stood at 1.6 times its 30-day average. The relative strength index stood at 56.6.

Of the 30 analysts tracking the company, 14 maintain a 'buy', six recommend a 'hold' and 10 suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implied a downside of 5.2%.