Results: Dixon Technologies (India) Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

Dixon Technologies (India) Limited (NSE:DIXON) just released its second-quarter report and things are looking bullish. Statutory earnings performance was extremely strong, with revenue of ₹115b beating expectations by 23% and earnings per share (EPS) of ₹68.11, an impressive 80%ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Dixon Technologies (India)

Taking into account the latest results, the consensus forecast from Dixon Technologies (India)'s 22 analysts is for revenues of ₹379.9b in 2025. This reflects a sizeable 38% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 17% to ₹140. In the lead-up to this report, the analysts had been modelling revenues of ₹352.9b and earnings per share (EPS) of ₹122 in 2025. So it seems there's been a definite increase in optimism about Dixon Technologies (India)'s future following the latest results, with a decent improvement in the earnings per share forecasts in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 13% to ₹13,700per share. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Dixon Technologies (India), with the most bullish analyst valuing it at ₹18,654 and the most bearish at ₹5,700 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Dixon Technologies (India)'s past performance and to peers in the same industry. The analysts are definitely expecting Dixon Technologies (India)'s growth to accelerate, with the forecast 90% annualised growth to the end of 2025 ranking favourably alongside historical growth of 34% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Dixon Technologies (India) to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Dixon Technologies (India) following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Dixon Technologies (India) going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Dixon Technologies (India) .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.