During Tuesday’s trading session, the shares of one of the leading providers of Electronic Manufacturing Services (EMS) in India are in focus, after the global brokerage firm, HSBC, retained a “buy” rating on the stock, with a potential upside of about 55 percent.
Price Movement
With a market capitalisation of Rs. 77,448.4 crores, at 09:51 a.m., the shares of Dixon Technologies (India) Limited were trading in the green at Rs. 12,857.35, up by nearly 2.4 percent, as compared to its previous closing price of Rs. 12,561.45. The stock has delivered positive returns of nearly 68 percent in the last one year, but declined by around 2 percent in a month.
Brokerage Target
The global brokerage firm HSBC has reiterated a “buy” rating on Dixon Technologies Limited and assigned a target price of Rs. 20,000 per share, representing a potential upside of nearly 55 percent from current price levels of Rs. 12,857.
Brokerage Outlook
HSBC has maintained its ‘Buy’ rating on Dixon Technologies, citing the U.S. reciprocal tariffs as a key growth catalyst for the Indian contract manufacturer. With increased tariffs on electronics imported from China, Vietnam, and Thailand, Dixon is well-positioned to benefit due to its robust domestic manufacturing capabilities and focus on import substitution.
Although Q4 FY25 results are expected to be solid, they may slightly underperform consensus projections, primarily due to seasonal factors and high base effects, according to HSBC. Nonetheless, factors such as new customer additions, expanding market share, and a higher share of domestic value addition are seen as long-term drivers of growth.
HSBC remains confident in Dixon’s domestic-led growth narrative, especially as global firms seek to diversify supply chains away from China and enhance local sourcing.
Moreover, the company reported strong Q3 performance, driven by a significant ramp-up in its mobile manufacturing segment. Additionally, plans for a substantial investment in a display fabrication facility are underway. HSBC anticipates continued earnings growth and further stock upgrades for the electronics manufacturer.
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Financials
Dixon Technologies reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 117 percent, from Rs. 4,818 crores in Q3 FY24 to Rs. 10,454 crores in Q3 FY25.
Similarly, the company’s net profit increased during the same period from Rs. 97 crores to Rs. 216 crores, representing an impressive growth of nearly 122.7 percent YoY. The company’s revenue from operations grew at a CAGR of around 40 percent between FY21 and FY24, while the net profit jumped by 33 percent CAGR over the same period.
About the Company
Dixon Technologies is primarily involved in the manufacturing of electronic goods such as consumer durables, home appliances, lighting products, mobile phones, refrigerators, telecom products, hearables & wearables, and security devices.
The company has multiple partnerships and subsidiaries with various investments underway to start full-fledged operations for semiconductors. It uses semiconductors in the assembly of devices like mobile phones, ACs, and fridges. The company partners with HKC Corporation Limited and Rexxam for manufacturing semiconductor production equipment.
Written by Shivani Singh
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