Synopsis: Dixon Technologies (India) Ltd gained after JM Financial upgraded the stock to ‘buy’ and raised the target price. Growth is driven by its Vivo JV, rising smartphone volumes, and strong FY28–FY29 production and earnings outlook.
The shares of this Electronic Manufacturing Services (EMS) company with operations in the electronic products vertical such as consumer electronics, lighting, home appliances, closed-circuit television cameras (CCTVs), and mobile phones are in the spotlight after it rose following JM Financial raised its target price to Rs. 14,200 per share.
With a market capitalisation of Rs. 73,977 cr, the shares of Dixon Technologies (India) Ltd were trading at Rs. 12110.40, increasing 1.5% in today’s market session, making a high of Rs. 12,281, up from its previous close of Rs. 12,090.95 per share.
What’s the News
Dixon Technologies rose following an upgrade by JM Financial Institutional Securities. The brokerage upgraded the stock’s rating from ‘add’ to ‘buy’ and raised its target price by 27%, setting it at Rs 14,200 from Rs. 11,200.
The primary catalyst for this positive outlook is Dixon’s joint venture with smartphone giant Vivo. Profits from this collaboration are expected to begin flowing into Dixon’s profit and loss statement by the end of the September quarter.
Vivo sells approximately 35–37 million smartphones annually in India, and nearly two-thirds of those volumes are expected to be manufactured through this joint venture. This translates to a massive production opportunity of nearly 24 million smartphones for Dixon, with the full financial benefits expected to manifest in FY28.
Market Share Expansion and Production Targets
JM Financial projects a significant surge in Vivo’s Indian smartphone market share, expecting it to grow from 19.2% in FY26 to 24.3% in FY27, and eventually reaching 34% by FY28. Backed by growing exports and the government’s Production-Linked Incentive (PLI) scheme, Dixon is well-positioned to hit its long-term smartphone production targets of 63–65 million units in FY28 and 68–72 million units in FY29.
Even without accounting for the newly added Vivo volumes, Dixon remains steadily on track to achieve its standalone FY27 smartphone volume guidance of around 33 million units. Beyond mobile phones, the brokerage noted that Dixon’s information technology and telecommunications equipment business verticals are also poised to provide robust support to the company’s multi-year growth trajectory. Consequently, JM Financial has raised its earnings per share (EPS) estimates for Dixon by 1–10% for the FY27–FY29 period.
Dixon Technologies (India) Ltd is one of India’s leading electronics manufacturing services (EMS) companies. It manufactures a wide range of products such as LED and smart TVs, mobile phones, washing machines, lighting products, CCTV systems, and other consumer electronics on a contract basis for global brands like Samsung, Xiaomi, Panasonic, and Philips.
On the financial front, it reported a mixed performance in Q4FY26. Revenue increased marginally by 2% YoY to Rs. 10,511 crore from Rs. 10,293 crore in Q4FY25, while EBITDA declined 8% YoY to Rs. 408 crore from Rs. 443 crore. Net profit declined 36% YoY to Rs. 298 crore compared to Rs. 465 crore in the year-ago period, while EPS declined 37% to Rs. 42.17 from Rs. 66.54.
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