Dixon Technologies (India) Limited Just Beat EPS By 205%: Here's What Analysts Think Will Happen Next
Dixon Technologies (India) Limited (NSE:DIXON) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 8.9% to hit ₹155b. Dixon Technologies (India) also reported a statutory profit of ₹118, which was an impressive 205% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Dixon Technologies (India) from 29 analysts is for revenues of ₹722.3b in 2027. If met, it would imply a huge 40% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to nosedive 35% to ₹199 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹691.3b and earnings per share (EPS) of ₹176 in 2027. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a decent improvement in earnings per share in particular.
View our latest analysis for Dixon Technologies (India)
With these upgrades, we're not surprised to see that the analysts have lifted their price target 8.1% to ₹14,264per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Dixon Technologies (India) analyst has a price target of ₹17,800 per share, while the most pessimistic values it at ₹8,157. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Dixon Technologies (India)'s growth to accelerate, with the forecast 57% annualised growth to the end of 2027 ranking favourably alongside historical growth of 40% 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 15% 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Dixon Technologies (India)'s earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Dixon Technologies (India) going out to 2029, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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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.