The price target ascribed by Nomura, implies a potential upside of nearly 18% from the stock’s closing levels on Friday. Nomura’s price target of ₹18,654 on Dixon Technologies is also the highest on the Street.
In its report, Nomura mentioned that Dixon Technologies has commenced mass production of Google Pixel smartphones.
It said that the China+1 strategy could unlock substantial long-term growth opportunities for Dixon through its partnership with Google.
The foreign brokerage estimates an additional ₹1,500 crore in revenue, contributing 4% to FY26 smartphone sales, depending on the scale of production.
Furthermore, the company’s ability to manufacture premium smartphones is seen as a significant long-term advantage, according to Nomura.
In an interaction with CNBC-TV18, Dixon said that it expects its margins to improve by 100-120 basis points over the next 24-28 months, driven by increased mobile components manufacturing.
The company plans to boost value addition in its mobile segment from the current 17-18% to 35-36% over the next two to three years.
Dixon has a revenue target of ₹35,000-40,000 crore for 2024-25 (FY25).
Dixon Technologies CFO Saurabh Gupta said, “We have done, broadly ₹18,600 crore in the first half. I feel the second half should be better than the first half. The Q1 )April-June quarter) moved slightly slower for us. Lot of customer ramp up happened during Q2 (July-September quarter) so the second half should be better than the first half.”
By 2025-26, the company expects the mobile segment’s contribution to business to reduce to 60-65% from 70% now, driven by the strength in ordering momentum in the telecom and IT hardware segments.
Out of the 31 analysts that have coverage on Divi’s Laboratories, 14 of them have a ‘Buy’ rating on the stock, while eight of them say ‘Hold’ and nine has ‘Sell’ rating.
Shares of Dixon Technologies (India) Ltd. ended 1.31% higher at ₹15,813.10 on Friday. The stock has gained 145% so far this year and is up 163% in the last 12 months.
