Macquarie has maintained its ‘Outperform’ rating on Dixon Technologies with a price target of ₹15,000, implying an upside of around 17% from Wednesday’s closing price of ₹12,832.55.
According to reports, the government is likely to approve the long-pending Dixon-Vivo joint venture this month. An inter-ministerial panel has reportedly granted in-principle approval, with final clearance expected following due process at the Ministry of Electronics and Information Technology (MeitY).
Macquarie believes the approval could provide a meaningful new growth avenue for Dixon.
During its fourth-quarter earnings call, the company had guided for FY27 revenue of ₹560 billion, excluding contributions from both the Vivo joint venture and the PLI 2.0 scheme.
The brokerage views both the Vivo partnership and PLI 2.0 as key upside catalysts to Dixon’s medium-term growth prospects and localisation strategy.
The positive view follows a similar assessment from JPMorgan earlier this week. The brokerage retained its ‘Overweight’ rating on Dixon Technologies with a price target of ₹12,700, stating that approval of the proposed Vivo venture could significantly improve the company’s growth outlook.
However, Dixon Technologies has clarified to the exchanges that regulatory approvals for the proposed joint venture are still pending. The clarification came in response to a query from the National Stock Exchange.
The company said it had entered into a binding term sheet with Vivo Mobile India in December 2024 to establish a joint venture focused on manufacturing electronic products, including smartphones. The transaction remains subject to definitive agreements, customary pre-closing conditions and receipt of all necessary statutory approvals.
Not all brokerages share the optimistic view.
Earlier this week, CLSA downgraded Dixon Technologies to ‘Underperform’ from ‘Hold’, while retaining its price target of ₹10,400, one of the lowest targets on the Street.
The brokerage argued that the stock’s recent rally on expectations of regulatory approvals has been excessive. Shares of Dixon have gained nearly 24% since March 30 and are up 19% over the past month.
CLSA expects Dixon’s organic volumes to decline in FY27, citing elevated memory prices that could weigh disproportionately on Indian smartphone demand. The brokerage also flagged delays in backward integration projects as a potential downside risk to earnings estimates.
With domestic smartphone market share nearing saturation, CLSA expects the company’s growth trajectory to moderate over the medium term.
Among the 32 analysts covering the stock, 22 have a ‘Buy’ rating, three recommend ‘Hold’, while seven have a ‘Sell’ rating.
Shares of Dixon Technologies ended Wednesday’s session 4.97% higher at ₹12,832.55.
