B&K Securities has initiated coverage on Dixon Technologies with a Buy rating and a price target of Rs 18,946, implying a potential upside of nearly 25% from current levels.The brokerage sees the company as a key beneficiary of Indias electronics manufacturing push and the accelerating global shift towards outsourcing.In its note, B&K said Dixon Technologies stands at the forefront of Indias electronics manufacturing transformation and is uniquely positioned to capitalise on domestic and global outsourcing opportunities.
The companys continued scale-up in mobile and IT hardware, expansion into industrial electronic manufacturing services (EMS) and electric vehicles (EVs), and increasing original design manufacturing (ODM) share are expected to drive strong growth.Between FY25 and FY27, B&K estimates Dixon will deliver a 42% revenue compound annual growth rate (CAGR) and a 69% CAGR in profit after tax (PAT).
The brokerage also expects Dixon to maintain a robust post-tax return on capital employed (RoCE) of around 30% by FY27.Factors such as a large total addressable market (TAM), government policy tailwinds like PLI schemes, rising export potential, and consistently strong return ratios support the bullish view, according to the report.Live EventsAlso Read: Street favourite! 10 BSE large-cap stocks analysts expect to rally up to 70%Dixon Technologies is one of Indias leading EMS providers, catering to segments such as mobile phones, consumer electronics, lighting, home appliances, wearables, and IT hardware.
With a strong focus on backward integration and capacity expansion, the company is seen as a key player in India's ambition to become a global electronics manufacturing hub.From a technical standpoint, Dixons Relative Strength Index (RSI) stands at 57.1, indicating neutral momentum.
The stock is currently trading above its 5-day, 10-day, 20-day, 30-day, and 100-day simple moving averages, but remains below its 50-day, 150-day, and 200-day SMAs.Dixon shares have declined nearly 16% so far in 2025, but are still up about 20% over the past 12 months and over 250% in the last two years.
The company currently has a market capitalisation of around Rs 91,926 crore.Also Read: 10 Nifty smallcap stocks analysts expect to rally up to 72%(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.
These do not represent the views of the Economic Times)