Leading brokerages have issued fresh stock calls across multiple sectors, with CLSA maintaining an Underperform rating on Dixon Technologies with a target price of ₹10,600. According to reports from Essential Business Intelligence, the brokerage highlights that Dixon Technologies is fighting on three fronts including decelerating demand, premiumisation trends, and increased competitive intensity. UBS maintains a Buy rating on Urban Company with a target price of ₹180, citing a demand-supply flywheel in motion with core home services growth driven by new users and higher frequency. Jefferies maintains a Buy rating on Solar Industries with a target price of ₹28,160, despite potential dilution from acquisitions. The Economic Times reports that despite Solar Industries shares plunging over 17% in two sessions following the ₹12,951 crore acquisition of South Africa's Omnia Holdings, Jefferies and Nuvama retain their Buy ratings, citing the company's earnings growth potential and strategic benefits from global expansion.
Dixon Technologies reported mixed Q1 results that highlighted the challenges facing the electronics manufacturing sector. Revenue from operations rose 21.1% YoY to ₹15,548 crore, but EBITDA declined 4.1% to ₹463 crore, pulling the EBITDA margin down to 3% from 3.8%. As reported by Essential Business Intelligence, reported net profit jumped nearly 200% to ₹663 crore, but this was largely driven by a sharp increase in other income. Excluding the one-time benefit, profit stood at ₹135 crore, down 40% YoY. The stock settled 2.24% lower at ₹13,195 on Tuesday, with the company declining 6.7% over five days and 6.09% over one month, though it remains up 28.6% over six months.
The newly announced UPI MDR framework is expected to significantly impact the payments ecosystem, with JPMorgan estimating a total maximum revenue pool of ₹17,000 crore. As reported by Essential Business Intelligence, the framework includes 40 basis points MDR on P2M transactions versus 20-30 basis points expected, with calculations suggesting 50% of all transaction value will accrue at 40 bps MDR. GS estimates 40-70% potential upside to FY28 EBITDA estimates for Paytm, with incremental EBITDA of about ₹1,400 crore in FY28 for Paytm in a high-end scenario. The revenue distribution includes ₹11,700 crore for banks (issuer+acquirer combined), ₹1,700 crore for Payer Platform Service Providers, and ₹3,400 crore for Third Party Application Providers.
Solar Industries shares have experienced significant volatility following the announcement of its ₹12,951 crore acquisition of South Africa's Omnia Holdings, with the stock falling 14% on Tuesday and another 4% on Wednesday to ₹18,480 as investors digest the all-cash deal. According to The Economic Times, the acquisition is Solar Industries' largest overseas acquisition, aimed at expanding its global commercial explosives and blasting solutions business across Africa's mining markets. Jefferies expects the Omnia acquisition to reduce defence segment's revenue contribution to 22-25% by FY30 from the earlier 35-40% estimate, with agriculture and explosives gaining larger shares. Omnia generates 54% of its revenue from agriculture, primarily fertilisers, while the remainder comes from mining explosives. Following the acquisition, agriculture could contribute around 24% of Solar Industries' consolidated revenue by FY30, while explosives could account for approximately 52%. The transaction could dilute Solar Industries' earnings per share by 4-6% in FY28 and FY29 under Jefferies' normalised growth assumptions, though the impact is expected to moderate to around 1% by FY30.
