Dixon Technologies stock rating upgraded by Jefferies on mobile growth

Published 24/07/2025, 06:54
Dixon Technologies stock rating upgraded by Jefferies on mobile growth

Investing.com - Jefferies has upgraded Dixon Technologies India Ltd (NS:DIXON) from Underperform to Hold and raised its price target to INR15,400.00 from INR13,300.00.

The upgrade follows Dixon’s strong Q1FY26 performance, where profit after tax doubled year-over-year, exceeding Jefferies’ estimates. Mobile and EMS (electronics manufacturing services) sales, which comprise approximately 90% of Dixon’s business mix, grew 124% compared to the same period last year.

Jefferies forecasts Dixon’s mobile volumes will increase from approximately 30 million units in FY25 to 45 million in FY26, and further to 65 million by FY27, aligning with management’s outlook.

After factoring in the Q1 beat, Jefferies has raised its FY27-28 earnings per share estimates by 3-4% and now projects an EPS compound annual growth rate of 44% for FY25-28.

Dixon Technologies shares have declined 11% year-to-date and currently trade at a forward price-to-earnings ratio of approximately 68x based on FY27 estimates, which Jefferies notes is broadly in line with the company’s historical five-year average.

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