Brokerage firm HSBC has upgraded the stock to “buy” from its earlier rating of “hold”, and has raised its price target to ₹16,000 from ₹12,000. The revised price target implies an upside potential of 17% from Wednesday’s closing levels.
This is the second bullish recommendation in as many days for Dixon Technologies, after Macquarie had also raised its price target on the stock to ₹16,000 from ₹15,000 on Wednesday.
Why Did HSBC Turn Bullish On Dixon?
The brokerage said the Centre’s ₹62,500 crore mobile phone manufacturing scheem comes as the old mobile PLI scheme expired.
With this, concerns of margin erosion and customer retention have now receded, it said.
According to HSBC, the move will the company’s mobile phones margin by 30 basis points. The brokerage has also increased the target price-to-earnings multiple to 48x.
Why Is Macquarie Bullish On Dixon Tech?
Macquarie in its note said that the Vivo joint venture (JV) is driving significant acceleration and visibility, which could triple Dixon’s earnings per share (EPS) by financial year 2029.
Last week, Dixon Tech inked a joint venture agreement and a shareholders’ agreement with Vivo Mobile India Pvt. Ltd. to incorporate a JV company in India for the original equipment manufacturer (OEM) business of electronic devices, including smartphones.
Macquarie expects Dixon Tech’s revenue and Earnings per Share (EPS) to grow at a compounded annual growth rate of 28% and 43% respectively over financial year 2026-2029.
The brokerage added that the optionality from the PLI 2.0, industrial electronics manufacturing services (EMS), duty cuts, automotive traction (cameras/displays) and IT hardware could provide an upside.
Centre’s new scheme
On Wednesday, the Union Cabinet approved the mobile phone manufacturing scheme with an outlay of ₹62,500 crore to strengthen the electronics manufacturing ecosystem in India and promote domestic production.
The scheme is for a five-year period and includes incentives for developing mobile phone brands in India. The new scheme is targeting cumulative production worth ₹39 lakh crore over five years with exports estimated at ₹15 lakh crore, the government said.
It added that its previous production linked incentive (PLI) scheme 1.0 for mobile manufacturing exceeded its targets for production and investment. Mobile phones were also the single largest exported item in the financial year 2026 in India.
Brokerage views and stock performance
Of the 33 analysts who have coverage on the Dixon Tech stock, 24 have a “buy” rating, three have a “hold” rating and six have a “sell” rating.
Dixon Tech shares were trading 7.4% up at ₹14,658 apiece at 9.20 am.2 The stock has gained 12% in the past month and 13.3% this year, so far.
