Dixon Technologies shares in focus as Emkay foresees 22% upside. Initiates coverage with ‘buy’ call
Dixon Technologies may gain investor attention on Wednesday, January 15 as domestic brokerage firm Emkay has initiated coverage on the stock with a ‘buy’ rating and a target price of Rs 20,000, foreseeing a potential for 22% upside.
Emkay has initiated coverage on Dixon Technologies citing strong growth prospects driven by several key factors. The brokerage firm highlights Dixon’s established leadership across various product verticals and its consistent expansion into adjacent markets as a key strength.
The domestic brokerage firm anticipates substantial margin improvement for Dixon, fueled by aggressive backward integration strategies, which are also expected to unlock opportunities for third-party sales and exports. The firm also points to the significant potential within the industrial PCB and auto electronics sectors, estimating a market size of Rs 4 lakh crore by FY35E, which is not currently factored into valuations.
Emkay believes multiple long-term growth catalysts are yet to be fully reflected in Dixon’s valuation. A key driver is the company's expected dominance in the expanding smartphone assembly market.
Emkay projects a 70-75% increase in Dixon’s market share, reaching approximately 44% by FY35E, up from the current 25%, noting the market is only pricing in a 30-35% share.
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