
Investec has reiterated its Buy rating on Dixon Technologies, setting a target price of ₹19,000, reflecting a potential upside of 23% from its current market price of ₹15,430.00.
Key Takeaways:
- Attractive Opportunity Amid Correction:
Investec views the recent market correction as a favorable opportunity for investors to enter Dixon Tech. - Display Fab Capex Plan:
While investors remain cautious about the $3 billion capex plan for the display fab initiative, Investec highlights its potential to be significantly value accretive. The business is projected to yield an EBITDA of ₹2,000 crore starting FY31E. - Logical Progression for Dixon:
The brokerage believes the initiative aligns well with Dixon’s growth trajectory and long-term strategic vision. - Compelling Economics:
The project’s economics look promising, with 70-75% of the investment subsidized by the government, reducing financial risks for the company.
Outlook:
Investec underscores that Dixon’s focus on innovation and its ability to capitalize on new opportunities position it for sustainable long-term growth. The current valuations provide an attractive entry point for investors.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before making investment decisions.