Day: April 22, 2025

Shares of Dixon Technologies (India) hit a three-month high of ₹16,795.80, surging 6 per cent on the BSE in Tuesday’s intra-day trade amid heavy volumes. The stock of the consumer electronics company is trading at its highest level since January 21, 2025. It has recovered 36 per cent from its low of Rs 12,326.60 touched on April 7, 2025. The stock had hit a 52-week high of Rs 19,149.80 on December 17, 2024. 

At 11:12 am; Dixon was trading 5 per cent higher at Rs 16,586.65, as compared to 0.44 per cent rise in the BSE Sensex. The average trading volumes on the counter jumped 1.5 times, with a combined 680,000 equity shares changing hands on the NSE and BSE.

India’s smartphone market performance in Q4FY25 

India’s smartphone market contracted 8 per cent year-on-year (YoY) to 32.4 million units in January to March 2025 quarter (Q4FY25), as per media reports. Xiaomi and Samsung saw steep shipment declines of 38 per cent and 23 per cent respectively. Samsung, with a 23 per cent decline, shipped 5.1 million units and saw its market share shrink to 16 per cent from 19 per cent. On the other hand, Vivo extended its lead in the market, retaining the top spot with 7 million units shipped and a 22 per cent market share.

Component Production Linked Incentive (PLI) scheme

Last month, the Indian government notified the Electronics Component Manufacturing Scheme. Incremental details include the incentives offered to different categories (ranging from 10 per cent for multi-layer PCBs in the first year to 1 per cent on display module sub assembly in the sixth year and 25 per cent capital subsidy). 

Brokerage views on Dixon – ICICI Securities and Kotak Institutional Equities 

Dixon is the largest contract manufacturer of all major Android smartphones. Here, the persistent trend of India’s domestic demand needs to be watched out, and Q4 could be a one-off quarter considering the global tariff uncertainty. Further, Dixon is in process of increasing value addition from 17-18 per cent currently to 35-37 per cent of bill of material which shall support its revenue and profit trajectory, ICICI Securities said in a note.

Kotak Institutional Equities expects Dixon to participate in the display modules, camera modules and electro-mechanical component segments. For Dixon, in the display module and camera module categories, the total capex required over six years is only Rs 250 crore each. The implied asset turn in display modules in year 6 is 5X and for camera modules, it is 3.6X. Hence, both the targets for revenue and capex seem quite achievable in the first few years of the scheme, given the large captive volumes for mobiles.  

“One of the biggest investor concerns has been the impact of Mobile PLI withdrawal. Based on our analysis, even if we include only the display module and the camera module businesses in our estimates, Dixon will be able to more than offset the impact of Mobile PLI withdrawal and see a 60 bps Ebitda margin expansion,” the brokerage firm said in its electronic manufacturing services (EMS) sector report.

FPIs cut stake, MFs increase holding in March 2025 quarter 

According to the March 2025 quarter shareholding pattern disclosed by Dixon, foreign portfolio investors (FPIs) reduced their holdings in the company to 21.81 per cent from 23.22 per cent at the end of December 2024 quarter. However, domestic mutual funds (17.20 per cent) and insurance companies (5.16 per cent) have raised their holdings during the quarter. They held 16.93 per cent and 5.10 per cent stake, respectively, in the previous quarter, the shareholding pattern data shows. 

About Dixon 

Dixon Technologies (India) is one of the largest home grown design-focused solutions Company engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India. Their diversified product portfolio includes consumer electronics like LED TVs, home appliances like washing machines, lighting products like LED bulbs, tubelights, and downlighters, mobile phones, and CCTV & DVRs, apart from wearables and refrigerators. 

Dixon also provides solutions in reverse logistics, i.e. repair and refurbishment services of LED TV panels. Dixon, a prominent player in the electronics manufacturing and design industry, has established unparalleled market dominance over the years. Operating on a B2B business model, it offers a diverse range of products.

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Shares of HDFC Bank touched a record high of ₹1,970.65 gaining 2.2 per cent on the BSE in intra-day trade. The stock was trading higher for the sixth straight session, and has surged 12 per cent during this period, as the HDFC Bank reported a good set of earnings for the quarter ended March 2025 (Q4FY25). 

At 10:41 am, with ₹15.04 trillion market cap, HDFC Bank was trading 2 per cent higher at ₹1,967.85 on the BSE. In comparison, the BSE Sensex was up 0.42 per cent at 79,746.

HDFC Bank Q4FY25 result update

HDFC Bank continued to deliver steady revival in earnings in Q4FY25, with standalone net advances growth at 5 per cent year-on-year (Y-o-Y) and 4 per cent quarter-on-quarter (QoQ) to ₹26.2 trillion, driven by retail and CRB segment. 

Net interest income (NII) grew 10.3 per cent Y-o-Y, led by 11 bps Q-o-Q improvement in margins at 3.54 per cent. The lender reported improvement in asset quality as gross non-performing assets (NPAs) ratio at the end of Q4FY25 dropped 9 basis points over Q3FY25 to 1.33 per cent. Net NPAs stood at 0.43 per cent, down 3 bps Q-o-Q.

HDFC Bank stock technical analysis  

HDFC Bank is likely to trade with a positive bias in the near-term as long as the stock trades above ₹ 1,800 levels; below which support for the stock exists around the 50-day Daily Moving Average (50-DMA) at ₹ 1,750 levels. 

Brokerage views on HDFC Bank: ICICI Securities 

Credit growth outlook remains encouraging, supported by a calibrated shift in funding cost and mix. Margins are expected to stay within a broad range, despite near-term volatility owing to repo-linked resets. Though fundamentals remain healthy, recent run-up in valuation limits upside in near term, ICICI Securities said in a note.

Management expects current improvement in systemic liquidity to aid deposit growth. However, pace of decline in credit deposit (CD) ratio will moderate going ahead as loan growth picks up pace and returns to pre-merger levels of ~85-90 per cent only by FY27. 

JM Financial on HDFC Bank stock price 

As the rate cut cycle plays out, analysts at JM Financial Institutional Securities expect margins to remain under pressure in the near term due to lag in repricing of deposits.  

The brokerage firm believes reduction in share of borrowings, revival of growth trends and stable asset quality should help the bank maintain its ROA profile going ahead.

Pickup in loan growth while reducing CD ratio gradually and maintaining NIM will drive the valuation trajectory of HDFC Bank. 

Amongst positives, solid asset quality, diversified asset mix should see the bank reporting reasonable RoA/ROE of ~1.7 per cent/14 per cent in FY26-27E. 

About HDFC Bank 

HDFC Bank is a leading private sector bank with consistent growth and operational performance over various cycles. Post merger, the bank has become the second largest in terms of size with a diversified portfolio. The bank has maintained superior return ratios resulting in premium valuations.

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Amid the frenzied rally in the banking shares on the stock exchanges, shares of few of leading banks such as SBI, Axis Bank and Bank of Baroda recently conquered the 200-Daily Moving Average (200-DMA). The 200-DMA, also known as the long-term moving average, is generally referred to in identifying a positive and negative trend. On the bourses, the National Stock Exchange (NSE)-based Bank Nifty index has surged nearly 14 per cent from its April low of 49,157, and now quotes at life-time highs around 55,700 levels. In comparison, the Nifty PSU Bank index has rallied nearly 16 per cent, but still quotes nearly 16 per cent below its all-time high of 8,053 levels. The PSU Bank index, however, has reclaimed its 200-DMA after a gap of five months. In recent trading sessions, SBI, Bank of Baroda and Axis Bank climbed above their respective 200-DMAs. Here’s what the technical charts indicate for these 3 banking stocks going ahead.

SBI Current Price: ₹832 Upside Potential: 19% Support: ₹816; ₹797 Resistance: ₹870; ₹917; ₹955 SBI stock is seen trading above its 200-DMA for the second straight trading session, after a gap of nearly 5 months. That apart, the stock is also seen trading firmly above the higher-end of the Bollinger Bands on the daily scale. Thus implying that the near-term bias is likely to remain upbeat as long as the stock trades above ₹816, followed by the 200-DMA support at ₹797. The long-term chart suggests that SBI can potentially zoom past its summit at ₹912, to register a new peak around ₹990 levels. On its way up, the stock could face resistance around ₹870, ₹917 and ₹955 levels.

Axis Bank Current Price: ₹1,219 Upside Potential: 14.9% Support: ₹1,205; ₹1,155; ₹1,130 Resistance: ₹1,240; ₹1,277; ₹1,340 Axis Bank is likely to trade on an upbeat note as long as the stock holds above ₹1,205. On the upside, the stock can potentially soar to ₹1,400 levels and record a new high. Interim resistance for the stock can be anticipated around ₹1,240, ₹1,277 and ₹1,340 levels. In case, the stock slips below ₹1,205, it may seek support around ₹1,155 and ₹1,130 levels.

Bank of Baroda Current Price: ₹255 Upside Potential: 13.7% Support: ₹251; ₹242 Resistance: ₹259; ₹271; ₹280 After conquering its 200-DMA on April 16, Bank of Baroda stock has now given a fresh breakout on the daily scale on Tuesday. Going ahead, the stock is expected to trade on a buoyant note as long as it holds above ₹251; below which support for the stock is seen at ₹242. On the upside, the stock can potentially soar to ₹290 levels, with intermediate resistance likely around ₹259, ₹271 and ₹280 levels.

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