Dixon Technologies reports doubled Q1 net profit, analysts predict continued growth
Dixon Technologies
gained around 3% on Wednesday after the company's Q1 net profit doubled, prompting most brokerages to raise stock's target prices. Analysts expect earnings to continue to grow over the next couple of years.
JP Morgan
, which raised its price target to ₹19,500 from ₹17,700 after June quarter, said it expects the company's revenues to double by FY27.
Agencies
"Growth will be driven by mobiles on the back of increased order book from its anchor customer and Vivo JV ramp-up from Q4FY26," said the brokerage. "Getting the iPhone order could be the icing on the cake and a significant further re-rating driver from here."
Dixon shares closed at ₹16,555 on Wednesday, off the day's high of ₹16,671. Brokerage
Nomura
said the approval for Longcheer JV for making and sale of smartphones could improve the company's market share prospects.
"With multiple component JVs ramping up, we expect margin tailwinds despite the production-linked incentive (PLI ) ending soon," said analysts at Nomura. Brokerage Goldman Sachs said that despite the growth prospects, there is limited potential for the company to surprise, citing pricey valuations. The brokerage said the stock is trading at 80 times PE ratio as against 12-14 times of global peers.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
5 minutes ago
- Hindustan Times
Donald Trump eyes 100% tariff on semiconductor import, to exempt Apple after $600 billion commitment
Donald Trump said he would impose a 100% tariff on imports that include semiconductors, though would exempt companies moving production back to the United States, as Apple Inc. CEO Tim Cook and the president announced a fresh $100 billion investment plan from the Oval Office. US President Donald Trump reaches to shake Apple CEO Tim Cook's hands in the Oval Office at the White House in Washington, D.C., on the day they presented Apple's announcement of a $100 billion investment in U.S. manufacturing.(REUTERS) 'We're going to be putting a very large tariff on chips and semiconductors, but the good news for companies like Apple is, if you're building in the United States, or have committed to build, without question, committed to build in the United States, there will be no charge,' Trump told reporters. 'So in other words, we'll be putting a tariff of approximately 100% on chips and semiconductors. But if you're building in the United States of America, there's no charge,' Trump said. 'Even though you're building and you're not producing yet, in terms of the big numbers of jobs and all of things building, if you're building, there will be no charge.' The announcement amounts to a major victory for Apple and Cook, who have faced escalating threats from Trump's tariffs that threatened to ratchet up the cost of producing their signature phones and computers. Apple's $100 billion US investment will include a new manufacturing program designed to bring more of Apple's production to the US. The company's American Manufacturing Program partners include glassmaker Corning Inc., Applied Materials Inc., Texas Instruments Inc. and others, the company said. Corning will dedicate an entire factory in Kentucky to Apple glass production, increasing that company's workforce in the state by 50%, the iPhone maker said. Corning was already a supplier to Apple, making glass for the very first iPhone at the same factory. Apple had previously pledged to spend $500 billion in the US over the next four years, a slight acceleration over its prior investments and previously announced plans, adding about $39 billion in spending and an additional 1,000 jobs annually. The announcement will bring Apple's cumulative commitment to $600 billion. The previously-planned $500 billion is said to include work on a new server manufacturing facility in Houston, a supplier academy in Michigan and additional spending with its existing suppliers in the country. The increased pledge comes as Trump escalates a tariff push that's set to raise costs for Apple throughout its international supply chains. Trump plans to whack India — a key production market for Apple — with 50% tariffs, the first half of which takes effect just after midnight alongside a raft of other country-specific levies designed to reduce trade imbalances. The other half, to penalize India for buying Russian energy, will take effect later this month. The president has said he could unveil separate levies on all products containing semiconductor chips as soon as next week. Cook, who attended the president's inauguration and donated to his inaugural committee, has pushed for tariff exemptions for his company's iPhones. Most iPhones sold in the US come from India, while the bulk of other products, including Apple Watches, iPads and MacBooks, are manufactured in Vietnam, which was hit with a 20% tariff. While details of those tariffs — and how firms would qualify for exemptions — have yet to be released, Trump singled out Cook's Apple as an example of how to avoid the increased levies. Cook's investment echoes dozens of pledges from companies since Trump won the 2024 presidential election, with CEOs flying to his Mar-a-Lago resort in Florida, and then to the White House once he was sworn in, to court the new administration and announce hundreds of billions of dollars worth of new deals. Many of these investments were already in the works prior to the November election, or were on par with previous investment trends, Bloomberg previously reported. Economists have also questioned whether all of the pledged spending, and associated job opportunities, will come to fruition. Apple's promised investments, while substantial, fall short of the full shift to US-based production that Trump and top White House officials have envisioned and encouraged. Earlier this year, the president threatened to impose a tariff of at least 25% on Apple if it didn't move manufacturing of the iPhone to the US, a day after he met with Cook at the White House. Cook told the president that final iPhone assembly 'will be elsewhere for a while,' though highlighted that several components are being made in the US. Trump, seemingly satisfied, praised the Apple leader's plans. 'Look, he's not making this kind of an investment anywhere in the world, not even close,' Trump said of Cook. 'He's coming back. I mean, Apple's coming back to America.'
Mint
5 minutes ago
- Mint
Large US banks say consumer finances are healthy despite tariffs
By Nupur Anand, Saeed Azhar and Tatiana Bautzer NEW YORK, - U.S. banking giants said consumers remained in good shape even after U.S. President Donald Trump's tariff policies roiled markets, but executives warned of potential weakness ahead. "The consumer basically seems to be fine," JPMorgan CFO Jeremy Barnum said in a call with analysts. The bank set aside $2.85 billion for credit losses in the second quarter, roughly 6.5% less than a year earlier. JPMorgan Chase, Citigroup and Wells Fargo posted second-quarter profits that beat analysts' forecasts, helped by a rebound in dealmaking and resilient consumer spending. "Consumers and businesses remain strong as unemployment remains low and inflation remains in check, credit card spending growth softened very slightly in the second quarter, but is still up year over year," Wells Fargo CEO Charlie Scharf told analysts. Higher-than-expected repayments in auto loans and credit cards prompted Wells Fargo to reduce its charge-offs, or debts that are unlikely to be recovered. The bank also reduced the amount of money set aside to cover potential loan losses. Still, executives also expressed concern about how consumers will weather the impact of higher tariffs on imported goods. U.S. consumer prices increased by the most in five months in June amid higher costs for some goods, suggesting tariffs were starting to have an impact on inflation, the Consumer Price Index showed on Tuesday. It increased 0.3% last month, in line with expectations. Citigroup anticipates spending will soften in the second half of the year, Chief Financial Officer Mark Mason told reporters. "Consumer health remains very strong," he said. "We do anticipate further consumer cooling in the second half as ... tariff effects play through." The bank's credit costs rose to $2.9 billion in the second quarter, mainly from net credit losses in U.S. credit cards. This article was generated from an automated news agency feed without modifications to text.
NDTV
5 minutes ago
- NDTV
Trump Announces Apple Investing Another $100 Billion In US Manufacturing
Washington: Apple CEO Tim Cook joined President Donald Trump at the White House on Wednesday to announce a commitment by the tech company to increase its investment in U.S. manufacturing by an additional $100 billion over the next four years. "This is a significant step toward the ultimate goal of ensuring that iPhones sold in the United States of America also are made in America," Trump said at the press conference. "Today's announcement is one of the largest commitments in what has become among the greatest investment booms in our nation's history." As part of the Apple announcement, the investments will be about bringing more of its supply chain and advanced manufacturing to the United States as part of an initiative called the American Manufacturing Program, but it is not a full commitment to build its popular iPhone device domestically. "This includes new and expanded work with 10 companies across America. They produce components — semiconductor chips included — that are used in Apple products sold all over the world, and we're grateful to the President for his support," Cook said in a statement announcing the investment. The new manufacturing partners include Corning, Coherent, Applied Materials, Texas Instruments and Broadcom among others. Apple had previously said it intended to invest $500 billion domestically, a figure it will now increase to $600 billion. Trump in recent months has criticized the tech company and Cook for efforts to shift iPhone production to India to avoid the tariffs his Republican administration had planned for China. While in Qatar earlier this year, Trump said there was "a little problem" with the Cupertino, California, company and recalled a conversation with Cook in which he said he told the CEO, "I don't want you building in India." India has incurred Trump's wrath, as the president signed an order Wednesday to put an additional 25% tariff on the world's most populous country for its use of Russian oil. The new import taxes to be imposed in 21 days could put the combined tariffs on Indian goods at 50%. Apple's new pledge comes just a few weeks after it forged a $500 million deal with MP Materials, which runs the only rare earths producer in the country. That agreement will enable MP Materials to expand a factory in Texas to use recycled materials to produce magnets that make iPhones vibrate. Speaking on a recent investors call, Cook emphasized that "there's a load of different things done in the United States." As examples, he cited some of the iPhone components made in the U.S. such as the device's glass display and module for identifying people's faces and then indicated the company was gearing to expand its productions of other components in its home country. "We're doing more in this country, and that's on top of having roughly 19 billion chips coming out of the US now, and we will do more," Cook told analysts last week, without elaborating. News of Apple's latest investment in the U.S. caused the company's stock price to surge by 5% in Wednesday's midday trading. That gain reflects investors' relief that Cook "is extending an olive branch" to the Trump administration, said Nancy Tengler, CEO of money manager Laffer Tengler Investments, which owns Apple stock. Despite Wednesday's upturn, Apple's shares are still down by 15% this year, a reversal of fortune that has also been driven by the company's botched start in the pivotal field of artificial intelligence.
