JPMorgan initiates Dixon Technologies India stock with Overweight rating

Published 09/07/2025, 06:54
JPMorgan initiates Dixon Technologies India stock with Overweight rating

Investing.com - JPMorgan has initiated coverage on Dixon Technologies India Ltd (NS:DIXON) with an Overweight rating and a price target of INR17,000.00.

The investment bank expects Dixon to record the second-fastest growth in its coverage universe, with revenues projected to double over FY25-27E and grow at a 38% CAGR over FY25-28E while maintaining stable margins.

JPMorgan believes this growth will be primarily driven by the mobile segment, citing an increased order book from Dixon’s anchor customer and the anticipated ramp-up of its Vivo joint venture starting in the fourth quarter of fiscal year 2026.

The firm sees additional upside potential in the mobile segment given the total addressable market of 90 million outsourced units and another potential 50 million units that could move from in-house to outsourced production, compared to Dixon’s target of 60-65 million units by FY27.

JPMorgan values Dixon Technologies at 57 times June 2027 earnings based on a discounted cash flow model that assumes a 21% revenue CAGR over the next decade, while noting that securing iPhone orders could be "the icing on the cake" and a significant re-rating driver.

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