Why Jefferies Reduced This LIC-Backed Stock's Price Target By Close To 10%

  • Benzinga India
  • Stock Market News
Why Jefferies Reduced This LIC-Backed Stock's Price Target By Close To 10%

Benzinga - Dixon Technologies (India) shares saw a slump on Tuesday after international research firm Jefferies downgraded the company’s stock to underperform, attributing the decision to the highly competitive nature and significant price sensitivity in the durables sector.

What Happened? Dixon Technologies has witnessed a substantial rise in its shares, surging over 150% in the past year, which now positions it at a forward FY25 P/E ratio of 73x. In response, Jefferies reduced the electronics manufacturer’s target price from ₹6,440 to ₹5,920.

Adding to the company’s recent activities, Dixon Technologies has reportedly partnered with Compal Smart for mobile phone manufacturing. Furthermore, the company unveiled plans for a new washing machine factory in Dehradun, Uttarakhand.

This new venture is expected to employ more than 1,000 individuals and boasts an annual production capacity of 24 lakh washing machines, signalling Dixon Technologies’ ongoing expansion and contribution to local employment opportunities.

Price Action: Dixon Technologies (India) Ltd. was trading 2.09% lower at ₹6,800 on Tuesday afternoon.

Read next: Hopes For Higher EPS Pension May Be Dashed By New Calculation Rules: Report

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