Dixon Technologies share price slips 5% in firm market; here's why

UBS Principal Capital Asia offloaded 6,86,064 shares at an average price of Rs 13,178.47 per share on Friday. The stake in Dixon Technologies was worth Rs 904.12 crore

Dixon Technologies share price lost 5 per cent on BSE in Monday's (September 2) intraday trade to hit a low of Rs 12,491.05. As of 12:45 PM, shares of Dixon Technologies were down 4.28 per cent or Rs 564.05 to Rs 12,622.5 per share. The market capitalisation of the company stood at Rs 75,528.74 crore.

By comparison, the BSE Sensex was up around 130 points at 82,500 level.

On Friday, UBS Principal Capital Asia offloaded 6,86,064 shares at an average price of Rs 13,178.47 per share, NSE data shows. The stake was worth Rs 904.12 crore. Similarly, Gravitation Research Capital also sold 3,93,569 shares at Rs 13,230.76 per share, implying a deal worth Rs 520.72 crore.

 

On the same day of buying, Gravitation Research Capital bought 3,99,569 shares at Rs 13,218.46 per share, which implies deal worth Rs 528.1 crore.

Before this, on August 4, 2023, Gravitation Research Capital had purchased 3,22,666 shares at Rs 4,673.66 per share on NSE and sold 322,866 shares at Rs 4,675.11 per share on the same day.

As per the shareholding pattern on BSE, as of June 2024, there are 7 Promoters and Promoter Groups who hold 33.24 per cent stake in Dixon Technologies On the other hand, public shareholding stands at 66.76 per cent.

The company will conduct an annual general meeting (AGM) on September 25, 2024.

Earlier, on August 13, the company completed the acquisition of Tranche 1 Shares, i.e., a 50.10 per cent stake in Ismartu India Private Limited, for a total consideration of Rs 275,98,73,643.

Meanwhile, in an interview to a TV channel, the company said overall growth in the ongoing financial year 2024-25 (FY25) is expected to be tepid on the back of the current ramp-up phase. Dixon Technologies, as per reports, has set a target of Rs 3,500-crore revenue in FY25 and aims to reach Rs 48,000 crore over the next six years in the IT hardware segment.

What should investors do?

BoB Capital has given a 'buy' rating on Dixon Technologies with a target of Rs 13,800 per share in its Q1FY25 result review. The brokerage is upbeat on the stock given the strong results and anticipated consensus upgrade across the market.

Dixon Technologies' share price history

In the past one year, shares of Dixon Technologies have gained 168.5 per cent against Sensex's rise of 26.2 per cent.