Nomura has maintained a Buy call on Dixon Technologies with a target price of ₹18,654 per share, highlighting the strong Q2 performance driven by mobile production and long-term opportunities in IT hardware and components.
Key highlights from Q2 results:
- Q2 results were led by strong traction in mobile production, positioning the company for long-term growth.
- Nomura raised estimates by 10%/8%/5% for FY25-27 and increased EPS by 3-5% for the same period.
- The company is expected to produce 4 crore smartphones in FY27, driven by demand from key mobile customers.
- IT hardware is gaining traction, with Dixon serving the top four customers in the sector.
- The government’s focus on strict import monitoring should further boost IT hardware growth.
- A focus on component manufacturing is seen as a key margin driver, with full benefits expected by FY27.
The stock’s current market price (CMP) is ₹15,044.95.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial advisor before making any investment decisions.
