Dixon Tech Primed For Breakout, Says SEBI RA Mayank Singh Chandel After Stellar Q4

Dixon Technologies shares fell 5% on Wednesday despite delivering a stellar performance in the fourth quarter of FY25. 

According to SEBI-registered analyst Mayank Singh Chandel, Dixon's strong fundamentals and bullish technical signals could position the stock for a significant breakout in the sessions ahead.

In Q4FY25, Dixon’s revenue surged 121% year-on-year to ₹10,292.5 crore, showcasing robust demand and strong execution across its verticals. 

EBITDA jumped 143% to ₹442.8 crore, while the EBITDA margin improved from 3.9% to 4.3%, reflecting better cost efficiencies. 

Net profit came in at a strong ₹465 crore, and the board declared a ₹8 final dividend per share (on a face value of ₹2).

From a technical perspective, Chandel observed that Dixon has exhibited sustained strength over the past year, consistently trading above its 50-day Exponential Moving Average (EMA). 

After peaking in December, the stock underwent a mild correction. However, the pullback lacked intensity and showed positive RSI divergence, indicating hidden strength beneath the surface.

More recently, the stock crossed back above the 50-day EMA, a key bullish signal. 

Price action has since consolidated just below the resistance zone of ₹17,680. Chandel acknowledged a minor negative RSI divergence, but emphasized that the broader trend still favors buyers.

For aggressive traders, Chandel recommended looking for entry opportunities on a decisive close above ₹17,000. 

He advised that more conservative traders may prefer to wait for a confirmed breakout above ₹17,680, which would represent a new all-time high for the stock.

Given Dixon’s historical respect for the 50 EMA, Chandel suggested trailing stop-losses using the 50 EMA rather than relying on fixed profit targets. 

He advised keeping the stock on the breakout watchlist.

Data shows retail sentiment is ‘bullish’ on this counter amid ‘high’ message volumes.

Dixon Tech shares have fallen 12% year-to-date (YTD).

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