Shares of Dixon Technologies India Ltd rose more than 9% on Wednesday, their biggest gain in a year after the company reported better-than-expected earnings for the March quarter.

The stock touched an intraday high of Rs 3,580.50, up 9.3%, its biggest gain since May 31, 2022. The stock was trading at Rs 3,502 on the BSE at 12:34 pm, up 7% from its previous close.

The company reported a 27.7% YoY increase in consolidated net profit to Rs 80.6 crore for the fourth quarter ended March 31, 2023. Consolidated revenue stood at Rs 3,065.5 crore during the period, up 3.8% year-on-year from Rs 2,953 crore a year ago.

EBITDA jumped 32.3% to Rs 156.3 crore in the fourth quarter of the fiscal year from Rs 118.2 crore last year. EBITDA margin in the reported quarter was 5.1%, compared to 4% a year ago.

Emakay maintained its “hold” rating and price target at Rs 3,403 per share.

Management expects a rebound in fiscal 2024, driven primarily by the mobile segment. The company is currently in the final stages of entering into partnerships with two clients and expects revenue of over Rs 6,000 crore in FY24. In addition, TV sales are expected to rise 12% and washing machine sales are expected to rise 20%. The company is actively seeking new customers outside of Bosch to meet these growth targets.

In addition, there are plans to increase revenue through Production-Linked Incentive (PLI) programs and positive growth prospects in new segments such as Refrigerators, FATL (Feature Phones), Wearables, IT Hardware and Telecom. The company also expects the LED TV market to recover through the addition of new customers and sub-licensing of Android TV.

JM Financials maintained its “buy” call on the stock with an unchanged target price of Rs 4,000 per share.