UBS has upgraded Dixon Technologies to a ‘Buy’ rating and raised its target price to ₹23,000 per share, the highest price target on the Street.
Top 5 brokerage targets for Dixon
| Brokerage | Rating | Target Price(₹) |
| UBS | Buy | 23,000 |
| Motilal Oswal | Buy | 22,300 |
| Nomura | Buy | 21,154 |
| Macquarie | Outperform | 20,000 |
| Investec | Buy | 20,000 |
According to the brokerage, Dixon is well positioned to benefit from the structural trend. The company is entering its next phase of growth through backward integration into non-semiconductor smartphone components such as displays, camera modules, enclosures, and batteries.
This move, UBS added, could drive a 110 basis points improvement in EBITDA margins by FY28E, compared to the consensus estimate of a 40 basis points gain, even with the phase-out of the mobile Production-Linked Incentive (PLI) scheme by FY26.
UBS believes the pace of inorganic expansion—evident in recent partnerships (Signify JV, LongCheer JV, Ismartu acquisition, Vivo JV and Inventec JV) underscores Dixon’s ability to unlock new growth drivers via expanding TAM, vertical integration, new categories and more global partnerships.
The brokerage expects Dixon to deliver $11 billion in revenue by FY28E, which is 2.5 times its FY25 revenue estimate.
It also highlighted strong growth levers beyond FY28E, including expansion into components beyond captive use, exports, new verticals such as networking and servers, and potential inorganic opportunities.
Based on these assumptions, the brokerage said scaling up will not dilute returns, as margin gains should offset lower asset turnover.
Key risk, as per the brokerage, include a delayed pickup in the component business.
Of the 38 analysts tracking Dixon Tech, 27 of them have a ‘Buy’ recommendation, five of them say ‘Hold’, while six others have a ‘Sell’ rating on the stock.
Dixon Tech shares settled 0.17% higher on Thursday at ₹18,161. The stock has remained flat on a year-to-date basis.
First Published: Sept 25, 2025 8:41 AM IST
