| Company | Value | Change | %Change |
|---|
In addition to Emkay, three other analysts have projected the stock to surpass ₹20,000. Nomura has the highest target at ₹22,256, followed by Anand Rathi at ₹21,875 and Systematix Group at ₹20,544, respectively.
Of the 31 analysts tracking Dixon Technologies, 17 of them have a ‘Buy’ recommendation, five of them say ‘Hold’, while nine others have a ‘Sell’ rating on the stock.
Emkay initiated coverage on the stock with a ‘Buy’ rating. The price target for Dixon Technologies implies a potential upside of nearly 23% from Tuesday’s closing levels.
The brokerage highlighted that Dixon’s management is centered around promoting entrepreneurship and strong execution within the organisation. By aligning with India’s vision of becoming a global manufacturing hub for consumer electronics, Dixon has, over time, gained leadership across verticals and expanded into new segments.
Emkay believes there are multiple enduring mid-to-long term drivers yet to be baked-in.
– Smartphone assembly opportunity
: Dixon is expected to dominate the growing smartphone assembly market, with its share rising from 25% to 44% by FY35E, driven by an estimated 70-75% of incremental market share gains. Currently, only 30-35% of this potential is priced in.
– Opportunity in IT hardware: Aided by the Production-Linked Incentive (PLI) scheme, Dixon’s entry into IT hardware and components strengthens its competitive position.
– Margin improvement: Aggressive backward integration is expected to boost margins, enable third-party sales, and drive export opportunities.
– Future Opportunities: Emerging segments like industrial PCBs and auto electronics (potential market size of ₹4 lakh crore by FY35E) offer additional growth prospects not yet factored in.
Emkay has build-in a 20% sales CAGR and a 40% EPS CAGR for FY25E-35E, with FY27E EPS expected to be 17% higher than consensus estimates, driven by smartphone market share gains and benefits from backward integration.
With sustained high returns on capital and strong cash flows, Emkay believes Dixon’s premium valuation is justified.
At the current market levels, Dixon Tech is trading at 34 times its estimated EV/EBITDA for December 2026.
| Calendar Year | Dixon Tech Share Returns |
| 2018 | -51% |
| 2019 | 84% |
| 2020 | 254% |
| 2021 | 105% |
| 2022 | -29% |
| 2023 | 68% |
| 2024 | 155% |
Shares of Dixon Technologies (India) Ltd. are down 0.30% on Wednesday at ₹16,226. Dixon Technologies’ market capitalisation stood at ₹97,144 lakh crore.
