Can Dixon Technologies share price touch ₹15,000 again after a 40% correction?

Synopsis: Dixon Technologies (India) Ltd is in focus after brokerage firm Investec reaffirmed its ‘Buy’ rating on the stock while lowering its target price. Despite the revision, the updated target still implies an upside potential of around 40%, reflecting continued confidence in the company’s long-term growth prospects.

The shares of the Mid-Cap company specialising in EMS, acting as the “Brand behind Brands” by designing and manufacturing a wide range of products like LED TVs, home appliances, mobile phones, lighting, and security devices, have been in the spotlight after Investec maintain ‘Buy” rating on the stock despite the sharp correction.

With a market capitalization of Rs. 64,933.75 crores on Thursday, the shares of Dixon Technologies (India) Ltd rose upto 1.78 percent, reaching a high of Rs. 10700.00 compared to its previous close of Rs. 10513.35.

What Happened

Dixon Technologies (India) Ltd., an EMS company, is in focus after brokerage firm Investec reaffirmed its ‘Buy’ rating on the stock, while lowering its price target by 21 percent to Rs. 15,000 from Rs. 18,900 previously. Despite the downgrade, the revised target still implies an upside potential of 40 percent from the stock’s last closing level.

Reason for the Dixon shares Correction

Dixon Technologies’ shares have declined by approximately 40% over the past four months, primarily due to uncertainties surrounding delays in government approvals for its Vivo and HKC joint ventures, coupled with a slowdown in consumer demand, particularly in the mobile segment. In response to these concerns, Investec has revised its FY26–28E EBITDA estimates downward by 5–14%.

Reason for Investec reaffirmed its ‘Buy’ rating

Valuation Update: The stock currently trades at around 40x FY28E earnings, down from nearly 60x three to four months ago, reflecting a more cautious pricing of near-term challenges.

Growth Drivers: Investec expects approvals for the Vivo and HKC joint ventures in the coming months, which should support revenue growth and margin visibility in FY27 and FY28.

Strategic Outlook: Dixon is likely to continue enhancing value addition across mobiles, IT hardware, and telecom categories through backward integration.

Financials & Others

The company’s revenue rose by 28.79 percent from Rs. 11,534 crore in September 2024 to Rs. 14,855 crore in September 2025. Meanwhile, the Net profit rose from  Rs. 412 crore to  Rs. 746 crore during the same period.

The company demonstrates strong profitability and capital efficiency, with ROCE of 40.0% and ROE of 32.8%, indicating effective use of both operating capital and shareholders’ funds. A low debt-to-equity ratio of 0.34 reflects a healthy balance sheet, while a PEG ratio of 0.84 suggests the stock may be reasonably valued relative to its growth prospects.

It has delivered a profit growth of 45.0% CAGR over the last five years, supported by a solid ROE track record of 28.1% over the past three years. Additionally, the median sales growth of 45.1% over the last 10 years highlights consistent and robust long-term business expansion.

Dixon Technologies (India) Ltd is India’s largest homegrown electronics manufacturing services (EMS) provider, offering end-to-end design and manufacturing for global and domestic brands in consumer electronics, home appliances, lighting, and mobile phones, with a growing focus on IT hardware, wearables, and medical equipment. 

It was founded in 1993, and an Noida-based company serves major brands like Samsung, Xiaomi, and Panasonic, boasting extensive manufacturing facilities and strong fundamentals, positioning itself as a leader in India’s booming electronics sector. 

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