This smartphone manufacturer rose 11.6% over the past week to hit an all-time high of Rs 17,530 on Thursday. The surge came after the announcement that its subsidiary, Padget Electronics, will commence mass production of Google Pixel smartphones in collaboration with Compal Smart Device India. Google aims to ship over 10 million Pixel phones globally this year, following the shipment of about 10 million units in 2023.
Dixon Technologies' revenue surged 2.3X YoY to Rs 11,528.4 crore in Q2FY25, driven by a 235% YoY rise in its mobile & EMS segment. However, the company expects the contribution from the mobile segment to reduce from 70% to 60-65% by FY26, due to strong order inflow in the telecom and IT hardware segments.
In the IT hardware segment, Dixon has partnered with four of the top five players, covering 70-75% of the market, and plans to scale up production in the coming quarters. The company will begin production for Lenovo in Q3FY25, followed by Asus in Q4FY25, and targets a revenue of Rs 4,500-5,000 crore in the next 2-3 years for the IT hardware segment.
Telecom segment revenues have grown sharply, rising from Rs 17.3 crore in FY22 to Rs 690 crore in FY24, driven by increasing demand from Bharti Airtel for set-top boxes. To support this growth, Dixon plans to double its telecom capacity at its Noida facility.
The company’s production-linked incentives (PLI) are ending in FY26. PLI is a government scheme that offers financial incentives to companies to increase their production in specific sectors. Dixon Technologies has been declared eligible under the reworked PLI 2.0 scheme for IT products. Commenting on this, MD Atul Lall said “We have committed to a total production value of Rs 48,000 crore over the six years of the PLI scheme. By the third year, we expect our annual revenue to stabilize between Rs 4,500-5,000 crore.”
Sharekhan maintains a ‘Buy’ rating on Dixon with a target price of Rs 18,800, indicating a potential upside of 7.9%. The brokerage believes that onboarding top-tier clients in the IT hardware segment positions Dixon for growth in the coming years. While the mobile & EMS segment is expected to lead, other verticals, including IT hardware and laptops, are likely to contribute to overall performance.
This consumer electronics company has gained 16.2% over the past week following board approval for a qualified institutional placement (QIP) to raise Rs 1,500 crore on December 4. This QIP will result in an equity dilution of 6.7%.
PG Electroplast posted a 56.3% YoY rise in net profit to Rs 19.3 crore in Q2FY25, and a 45.7% increase in revenue YoY due to a strong order book across its product lines. The product business (mainly home appliances), contributing 53.7% to the total revenue, grew 106% YoY. The room air conditioners (RAC) segment saw a growth of 212% due to the extended summer season, while the washing machine business grew 23% YoY during the same period. Operating profit margins improved by 3% YoY in Q2, driven by cost control and operating leverage.
Last month, the company, through its wholly owned subsidiary PG Technoplast, signed a definitive agreement with Spiro Mobility, an electric two-wheeler company based in Africa. Under the agreement, the company will serve as Spiro Mobility’s exclusive manufacturing partner for electric vehicles in India. Vishal Gupta, MD (Finance), said, “We are looking at a revenue of around Rs 500 crore by the second year of operation.”
Nuvama maintains a ‘Buy’ rating after the company surpassed Q2FY25 expectations by 10%. The brokerage expects the company to achieve a revenue and net profit CAGR of 29% and 43%, respectively, over FY25-27. However, it highlights unfavourable weather conditions and delays in ramping up new categories as key risks.
Thishealthcare company surged 11.4% over the past eight trading sessions, following a merger announcement with Blackstone-backed hospitals operator Quality Care India (QCIL). The merged entity, Aster DM Quality Care, aims to become one of India's top three hospital chains in terms of revenue and bed capacity.
The new entity will have a network of 38 hospitals and over 10,150 beds across 27 cities and nine states with a market presence in South and Central India. Aster shareholders will own 57.3% of the merged entity, while QCIL shareholders will hold the remaining 42.7%. Azad Moopen, Founder and Chairman of Aster DM Healthcare, will continue as the Executive Chairman, and Varun Khanna, Group MD of Quality Care, will become the MD and Group CEO of the merged entity.
Alisha Moopen, Deputy Managing Director of Aster DM Healthcare,said “The merged entity will be uniquely positioned to pursue both brownfield and greenfield expansion projects with plans to reach 13,300 bed capacity by FY27.”
InQ2FY25, Aster DM Healthcare reported a revenue of Rs 1,086.4 crore beating Trendlyne’s Forecaster estimates by 1.3%, despite declining 67.2% YoY due to the sale of its GCC (Gulf Cooperation Council) business to a consortium led by Fajr Capital in Q4FY24. However, the company’s revenue grew by 8.5% QoQ.
In H1FY25, the company’s average revenue per occupied bed (ARPOB)rose by 11.8% YoY to Rs 43,600. The company plans toadd 1,800 beds by FY27, increasing its total capacity to 6,800.
After the merger announcement, Prabhudas Lilladharmaintains its ‘Buy’ rating with a target price of Rs 620, indicating an upside potential of 26.4%. The brokerage expects an EBITDA CAGR of 24% over FY25-27 and notes that the management aims for a 10-15% increase in EBITDA over the next 3-4 years driven by optimizing material and manpower costs.
This marine port & services company rose 5% on December 2 after securing a contract worth Rs 1,000 crore from the Defence Ministry. The contract involves the short refit and dry docking of a large Indian naval vessel. In addition, the Defence Acquisition Council approved five capital acquisition proposals totalling over Rs 21,772 crore, providing a boost to defence stocks like Hindustan Aeronautics, Bharat Dynamics, and shipbuilders including Cochin Shipyard. The procurement includes equipment for the Indian Navy, Coast Guard, and Air Force.
Cochin Shipyard has surged by 7.1% over the past week. This rise in share price is also driven by a memorandum of understanding (MoU) signed by the company with Seatrium Letourneau USA. This involves designing and providing critical equipment for jack-up rigs for the Indian market on November 25.
As of September 30, 2024, Cochin Shipyard’s order backlog stands at Rs 22,000 crore, providing strong revenue visibility over the next few years. Speaking on this Madhu S Nair, the CEO said, “Our order book reached an all-time high during the second quarter, which involved building 65 ships, with the bulk of the orders coming from Germany, Norway, Cyprus, and the Netherlands. Apart from these, we have our focus on making green ships and already fulfilling orders for hydrogen fuel cell and methanol ships, electric ships, hybrid ships, and other sophisticated ships.” During the quarter, the company completed the capacity expansion of its dry dock and international ship repair facility. This is expected to improve its operational capability, enabling the construction and repair of larger vessels.
The company reported a 13% YoY increase in revenue to Rs 1,143.2 crore in Q2, led by better execution in the shipbuilding and ship repair segments. Net profit grew 4.1% YoY to Rs 188.9 crore during the quarter. However, EBITDA margins declined 260 bps YoY to 18%, due to higher input costs and lower shipbuilding margins.
Geojit BNP Paribas has a ‘Buy’ rating on Cochin Shipyard with a target price of Rs 1,557, which the company has already surpassed. The brokerage believes the company’s long-term prospects have improved in terms of capacity expansion, order visibility, and ship repair orders.
This industrial products company rose by over 3% on December 2 as it received its largest-ever export order worth Rs 2,039 crore for the supply of defence products, over a period of four years. Following this, on December 4, the Defence Acquisition Council, led by Defence Minister Rajnath Singh approved five defence acquisition proposals worth over Rs 21,772 crore, creating a potential opportunity for the company in defence orders.
The company released its Q2FY25 result on November 13. Its net profit rose by 48.2% YoY to Rs 285.9 crore, while its revenue rose 28.9% YoY on the back of a rise in defence order inflows. However, the company missed Trendlyne Forecaster's revenue estimate by 10% and net profit estimate by 21% due to delays in the Indian 'Pinaka' (rocket launcher) order and slow growth in the construction and infrastructure segments. It appears in a screener of stocks that have consistently given high returns over five years in Nifty500.
ICICI Securities notes that the market is underestimating the impact of the company's ongoing export order inflows in the defence sector. With Rs 4,500 crore in orders for CY24, they expect annual revenue growth of Rs 1,100–1,300 crore. The defence order book, at Rs 3,360 crore before Q2FY25, is expected to rise to Rs 5,000–5,200 crore with the new order.
Manish Nuwal, CEO & managing director of the company, revised the FY25 capex guidance upward to Rs 1,200 crore and also expects defence product sales of Rs 1,500 crore, making up 20% of total sales. Regarding the Pinaka orders, he said, “Due to Diwali and the holiday season, Pinaka orders were delayed, but we expect to receive them within a month, marking a significant milestone for our company.”
ICICI Securities retains its ‘Buy’ rating on Solar Industries with a target price of Rs 13,250. The brokerage notes that the incremental earnings from domestic orders are likely to sustain defence revenues for the company at Rs 1,800-2,500 crore on average and keep margins elevated over the next four years. At this stage, the brokerage’s FY26 EPS estimate is 10% higher than consensus and it believes that upward revisions are likely.
Trendlyne's analysts identify stocks that are seeing interesting price movements, analyst calls, or new developments. These are not buy recommendations.
