Emkay has initiated a buy rating on Dixon Technologies, setting a target price of ₹20,000/share, representing a 22.70% upside from its current market price of ₹16,300.
Key highlights:
- Dixon has successfully expanded into adjacent markets and is poised to dominate the smartphone assembly market, potentially growing its market share to ~44% by FY35E.
- Aggressive backward integration has driven margin improvements, with opportunities for third-party sales and exports.
Emkay believes Dixon’s robust prospects and leadership position justify its premium valuation, with an implied Dec-26 EV/EBITDA of ~41x.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investments in stocks are subject to market risks.
