CLSA has reaffirmed its high-conviction outperform rating on Dixon Technologies, raising its target price to ₹19,000. The new target suggests an upside of approximately 14% from the current market price of ₹16,644, driven by accelerating smartphone volumes, export momentum, and robust earnings visibility.
Dixon reported Q4 EBITDA in line with expectations, though PAT came in slightly below due to higher minority interest. However, the brokerage remains bullish on the medium-term outlook.
Smartphone volumes are projected to rise sharply to 42–44 million in FY26 and over 60 million in FY27, up from 6.5 million in FY24 and 28 million in FY25. This is expected to be supported by new customer additions, wallet share gains, and export expansion.
Although margins could moderate in FY27 with the phasing out of PLI benefits, CLSA believes backward integration, operational efficiencies, and scale will sustain profitability. Furthermore, new segments like IT hardware (laptops) and industrial EMS are expected to contribute from FY27 onwards.
On the back of strong top-line growth and improving margins, CLSA expects PAT to grow at a 45% CAGR over FY25–28.
Current market price (CMP): ₹16,644.00
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