Nomura has reiterated its Buy rating on Dixon Technologies and set a target price of ₹21,154 per share, implying an upside of around 31% from the current market price of ₹16,110.00.
The brokerage said Dixon’s Q1 results were ahead of estimates, driven by robust execution in the mobile and components segments. Nomura highlighted that the company’s mobile manufacturing ramp-up is on track and is expected to continue in the coming quarters.
Nomura also sees margin expansion as a key driver, aided by scale-up of multiple joint ventures. It projects EBITDA margins to improve from 3.9% in FY26 to a range of 4.4–4.7% in FY27–28, reflecting operating leverage benefits.
Overall, the brokerage remains bullish on Dixon’s growth trajectory and margin improvement potential over the medium term.
Disclaimer: The brokerage views expressed above are those of Nomura. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions.
