Dixon Technologies Can Rally 33%, Says Motilal Oswal Maintaining 'Buy' — Check Target Price

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Motilal Oswal Report

We recently interacted with Dixon Technologies India Ltd.'s management to understand company’s growth potential. Our bias continues to remain positive on Dixon owing to its market leadership positioning, JVs with other players that ensure long term sustainability of volumes, backward integration and ability to scale up other segments such as telecom, IT hardware, refrigerator etc.

We understand that competition is catching up but Dixon has first mover advantage in terms of 19% volume market share in smartphone market in FY25 moving up to 40% by FY27-end, ability to address 30- 35% BoM in next one-two years for mobile manufacturing and ability to benefit from export opportunities from key clients in future where competition lags behind Dixon.

We revise our estimates to factor in slightly better volumes for mobile and EMS along with higher minority interest for the JVs and also add the value of stake in Aditya Infotech.

We maintain Buy with a DCF based target price of Rs 22,300 (earlier Rs 22,100).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.