Dixon Technologies stock upgraded to Add by Axis Capital on strong growth outlook

Published 21/07/2025, 12:56
Dixon Technologies stock upgraded to Add by Axis Capital on strong growth outlook

Investing.com - Axis Capital (NYSE:AXS) Limited has upgraded Dixon Technologies India Ltd (NS:DIXON) from Sell to Add, while raising its price target to INR17,483.00 from INR13,842.00.

The upgrade follows Dixon’s strong performance in mobile manufacturing, which saw a 159% compound annual growth rate (CAGR) between fiscal years 2023 and 2025, driven by the Production Linked Incentive (PLI) scheme.

Axis Capital expects Dixon to produce 42.4 million, 65.8 million, and 70.1 million mobile units in fiscal years 2026, 2027, and 2028, respectively, as the company transitions toward backward integration into components and Original Design Manufacturing (ODM) after the completion of mobile PLI in FY26.

The research firm also forecasts Dixon will begin manufacturing display and camera modules, with projected production of 16 million and 47 million units respectively in FY27, increasing to 32 million and 58 million units in FY28.

Axis Capital predicts Dixon will achieve revenue, EBITDA, and earnings CAGRs of 43%, 46%, and 41% over FY25-28E, while also projecting robust IT hardware growth at approximately 218% CAGR from FY25 to FY28.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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