Synopsis: With the stock giving a compounded return of 50 percent in the last three years, the EMS player surged after receiving government approval to form a joint venture to manufacture display modules for multiple electronics segments.
A mid-cap stock engaged in electronic manufacturing services surged after receiving government approval to establish a joint venture for manufacturing liquid crystal and TFT-LCD display modules used in smartphones, TVs, and automobiles. Following the development, two major global brokerages have maintained bullish views and issued higher target prices.
With a market cap of more than Rs 63,200 Cr, Dixon Technologies (India) Ltd saw its stock hit an intraday high of Rs 10,500 which is 7 percent higher than the previous close of Rs 9,800. The company stock has given a compounded return of 50 percent in the last three years.
News
Dixon Technologies has received approval from the Ministry of Electronics and Information Technology (MeitY) to form a joint venture with HKC Overseas Limited. After completion, Dixon will hold a 74 percent stake in Dixon Display Technologies Private Limited, while HKC will own the remaining 26 percent.
The joint venture will develop, manufacture, and distribute liquid crystal modules and thin-film transistor liquid crystal display modules for sectors such as mobile phones, automotive displays, televisions, notebooks, and industrial displays, strengthening domestic manufacturing and supporting the “Make in India” electronics component ecosystem.
Brokerage View
Brokerage firm Nomura Holdings has maintained a ‘buy’ rating on Dixon Technologies (India) Limited with a target price of Rs 14,678, implying a 40 percent upside from current highs. The brokerage expects the company’s backward integration into display modules to support structural margin expansion, with display assembly contributing higher margins and adding around 50- 100 basis points to overall margins by FY28.
Meanwhile, JPMorgan Chase & Co. has given a target price of Rs 13,700, a 30 percent upside from current highs. The brokerage cited potential EBITDA contribution from the HKC joint venture and component expansion while trimming earnings estimates due to mobile volume pressure from rising memory prices, despite expecting 36 percent earnings CAGR between FY26- FY28.
Business & Financial Overview
Founded in 1993 and headquartered in Noida, Dixon Technologies (India) Ltd is India’s leading electronic manufacturing services (EMS) company. It provides design-led manufacturing solutions for consumer electronics, home appliances, lighting, mobile phones, and security systems, partnering with global and domestic brands while playing a key role in the government’s “Make in India” manufacturing push.
Moreover, the Union Budget 2026- 27 further supports Dixon’s growth by doubling the Electronics Components Manufacturing Scheme (ECMS) outlay to Rs 40,000 crore, encouraging domestic production and reducing import dependence through targeted fiscal incentives.
In the latest quarterly result the company has seen its revenue from operations increase by 2 percent YoY, from Rs 10,454 Cr in Q3FY25 to Rs 10,672 Cr in Q3FY26, while the QoQ decreased by 28 percent from Rs 14,855 Cr. The net profits grew by 48 percent going from Rs 216 Cr in Q3FY25 to Rs 321 Cr in Q3FY26, while the QoQ decreased by 57 percent from Q2FY26’s Rs 746 Cr.
The company has a 3 year sales CAGR of 54 percent, while the TTM is at 46 percent. The company’s 3 year profit CAGR is at 60 percent, while the TTM number is at 122 percent. The company also has a ROCE of 40 percent and a ROE of 33 percent.
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