The stock is trading near a key support zone with a visible cup-and-handle pattern.
Dixon Technologies shares are in focus ahead of their first quarter (Q1) earnings, with investors eyeing key support and resistance levels.
SEBI-registered research analyst Rohit Mehta said he is tracking whether strong results could reignite a rally toward the stock’s all-time high.
The company's promoter holding slipped from 32.42% in December 2024 to 32.27% in March 2025.
Foreign institutional investors reduced their stake from 23.22% to 21.81% in the same period, while domestic institutional investors increased their holding from 22.61% to 23.07%.
For the March 2025 quarter, sales rose 120.97% year-on-year and declined 1.54% quarter-on-quarter. Operating profit jumped 143.41% year-on-year and 13.30% sequentially.
Profit before tax climbed 343.08% year-on-year and more than doubled quarter-on-quarter with a 102.11% rise. Earnings per share increased 318.23% from the previous year and 133.47% from the December quarter.
Highlighting the positives, Mehta said Dixon is expected to report a strong quarter and has delivered a five-year compound average growth rate (CAGR) of 45%.
He pointed out a consistently high return on equity (ROE) of 28.1% over the past three years, and a 10-year median sales growth of 45.1%.
On the downside, Mehta cautioned that the stock trades at 31.9 times its book value, which he said appears stretched. He also flagged that a significant portion of earnings includes other income of ₹498 crore.
As of Sunday, Mehta said the stock is trading near a support zone of ₹15,200–₹15,400, which has held firm on multiple retests. The resistance lies at ₹19,148, its all-time high.
He observed a visible cup-and-handle pattern formation and said price action remains bullish as long as it holds above ₹15,200.
If momentum sustains, he is watching for a possible move toward ₹19,148.
On Stocktwits, retail sentiment was ‘neutral’ amid ‘normal’ message volume.
Dixon’s stock has declined 10% so far in 2025.
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