Dixon Shares in Focus
- 20th January 2025
Aaj Ka Bazaar
Wall Street indices ended in the positive territory, marking their best weekly performance since the U.S. presidential election in November. The S&P 500 rose 1.00%, the Dow Jones Industrial Average rose 0.78%, and the Nasdaq climbed 1.51%. This positive momentum carried into Asia-Pacific markets, which opened higher following a positive conversation between Donald Trump and Chinese leader Xi Jinping ahead of the US President-elect’s inauguration. Tracking gains from global markets, Indian benchmark indices are expected to open on a positive note, which is also indicated by GIFT Nifty trading higher. On the stock-specific front, Gland Pharma received an Establishment Inspection Report (EIR) from the U.S. Food and Drug Administration (US FDA) for its Pashamylaram facility in Hyderabad, signaling the closure of the inspection. The Good Manufacturing Practices (GMP) inspection at this facility was conducted by the US FDA from July 25 to August 2, 2024.
Markets Around Us
BSE Sensex –76,978.53 (0.47%)
Nifty 50 – 23,290.00 (0.38%)
Bank Nifty – 48,834.15 (0.60%)
Dow Jones – 43,487.58 (0.01%)
Nasdaq – 19,627.01 (1.49%)
FTSE – 8,505.22 (1.33%)
Nikkei 225 – 38,890.20 (1.13%)
Hang Seng – 19,996.28 (2.11%)
Sector: Consumer Electronics
Dixon Signs MoU to Acquire Assets
Dixon Technologies’ share price will attract attention on January 20 as the company moves forward with acquiring land and assets from KHY Electronic India. The acquisition will include land, buildings, machinery, and other assets for up to Rs 133 crore, excluding taxes. The deal will be executed through Dixon’s subsidiary, IsmartU India, which has signed a binding Memorandum of Understanding (MoU) with KHY Electronic. In addition, Dixon’s board of directors will meet on January 20 to review and approve the company’s unaudited financial results for the quarter and nine months ending December 31, 2024. Research firm Emkay recently initiated coverage of the stock with a “buy” rating and a target price of Rs 20,000. Dixon’s share price has fluctuated recently, touching a 52-week high of Rs 19,149.80 in December and a low of Rs 5,785 in January, 2024. The stock is currently trading 10% below its 52-week high.
Why it Matters:
The acquisition of assets from KHY Electronic boosts Dixon Technologies’ growth prospects, potentially enhancing its manufacturing capacity. The company’s upcoming financial results and positive coverage from Emkay could influence investor sentiment. With recent price fluctuations, market attention is high on Dixon’s future performance.
NIFTY 50 GAINERS
BPCL – 274.05 (2.68%)
RELIANCE – 1300.00 (2.65%)
COALAINDIA – 388.40 (2.52%)
NIFTY 50 LOSERS
INFY – 1817.50 (-5.73%)
AXISBANK – 992.00 (-4.43%)
SHRIRAMFIN– 526.50 (-3.71%)
Sector: Hotels & Resorts
Indian Hotels Shares Drop Despite Strong Earnings
Shares of The Indian Hotels Company (IHCL) dropped 3% to Rs 789 on January 20 despite reporting strong financial results for the October-December quarter of FY25. The company posted a 29% year-on-year increase in net profit, reaching Rs 582.32 crore, with revenue from operations rising nearly 29% to Rs 2,533.05 crore. IHCL’s earnings per share (EPS) for the quarter was Rs 4.09, and total income climbed 29% to Rs 2,591.73 crore. EBITDA also rose by 27%. Jefferies maintained a “Buy” rating on the stock with a target price of Rs 1,000, citing a positive outlook for demand, supported by large events, weddings, and travel. Despite the share price dip, IHCL’s performance remains strong, with a 76% return over the past year, significantly outperforming the Nifty index. The company also plans to reach 700 hotels by 2030, further indicating long-term growth potential.
Why it Matters:
Despite strong earnings and positive outlook, IHCL’s share price fell 3%, indicating market uncertainty. The company’s robust growth, with a 76% return over the past year, suggests potential for long-term gains. Investors are focused on future demand drivers, including large events and travel.
Around the World
Most Asian stocks rose on Monday, driven by optimism that U.S. President-elect Donald Trump may soften his stance on China. Japanese and Hong Kong stocks led the gains, with the Nikkei 225 and Hang Seng indexes rising 1.5% and 1.6%, respectively. There was speculation that Trump might not impose harsh tariffs on China, as he did not mention tariffs during a recent rally. However, concerns remain about his plans for trade, with reports suggesting he could still sign executive orders, including higher tariffs. Chinese markets rose as the People’s Bank of China kept interest rates unchanged and continued stimulus measures. Despite this, there are concerns about the potential impact of U.S. tariffs on China’s economy, especially on exports and the property market. Broader Asian markets were mostly higher, though caution remained ahead of Trump’s inauguration and key economic data this week.
Option Traders Corner
Max Pain
Nifty 50 – 23,500
Bank Nifty – 50,000
Nifty 50 – 23,198 (Pivot)
Support – 23,105, 23,006, 22,913
Resistance – 23,296, 23,390, 23,488
Bank Nifty – 48,632 (Pivot)
Support – 48,217, 47,894, 47,479
Resistance – 48,955, 49,370, 49,93
Did you know?
2 Million Indian Travelled to USA
The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.
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