Nomura reiterated its ‘Buy’ rating on Dixon Technologies with a target price of Rs 21,409, pointing to strong export momentum and robust smartphone demand driven by global tailwinds.
The brokerage said the management remains confident of achieving smartphone production volumes of 60–65 million units by FY27. Dixon is also targeting a 30%–70% business share from key clients like Xiaomi, Oppo, and Vivo. Its anchor customer Motorola is ramping up capacity, which is expected to further support volumes.
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Meanwhile, Equirus assigned an ‘Add’ rating on the stock with a target price of Rs 18,000, stating there are several near-term catalysts for growth.
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The brokerage addressed market concerns regarding Xiaomi potentially reallocating volumes post-FY26, calling such fears “premature” as Dixon caters to the sub-Rs 7,000 ASP smartphone segment, which still qualifies for PLI benefits. It also noted that Motorola’s diversification plans pose limited risk, with Dixon’s 12 million volume order book intact and likely to be offset by higher ASP export models.Equirus added that while the expiry of the PLI scheme may weigh on margins, Dixon is well positioned thanks to its backward integration efforts. Of the 3.9% EBITDA margin expected in FY25, about 0.5% is from PLI benefits. The company’s upcoming Chennai facility is expected to boost localisation from 4–5% to 15–17%.Strategic initiatives such as the 70:30 JV with HKC for display modules and plans for a tie-up or acquisition with a global camera module player were also highlighted as long-term positives. These moves are seen as positioning Dixon to benefit from the upcoming Electronics Component Policy in July 2025 and re-engage with global brands.
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Dixon Technologies shares are down 27% year-to-date but have surged 350% over the past two years. The company currently has a market capitalisation of Rs 88,841 crore.
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