HSBC has reiterated a ‘Buy’ rating on Dixon Technologies, with a target price of ₹20,000, highlighting the U.S. reciprocal tariffs as a potential catalyst for the Indian contract manufacturer. With tariffs increasing on Chinese, Vietnamese, and Thai electronics, Dixon could emerge as a key beneficiary due to its strong domestic manufacturing ecosystem and import substitution strategy.
While FY25 Q4 numbers are expected to be strong, they may fall slightly short of consensus estimates, HSBC said, attributing this to seasonality and higher base effects. However, customer additions, market share gains, and rising domestic content remain long-term growth drivers.
The brokerage believes Dixon’s domestic-led growth story remains intact, especially as companies look to de-risk supply chains from China and boost local sourcing.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
