Motilal Oswal Sees 33% Upside in THIS IT Stock On Growth Potential; RoE At 32%; Do You Own? Check Revised TP

Dixon Technologies Share Price Today: Strong market leadership positioning, sustainable volumes, joint venture partnership and backwards integration will significantly boost Dixon Technologies' profitability in the long run, noted Motilal Oswal. The brokerage sees strong potential in the IT stock and has revised its share price target for Dixon Technologies.

The IT firm recently announced a joint venture partnership with display modules manufacturing with Chinese company HKC Overseas.Dixon Technologies shares were trading 1.37% higher at Rs 16,907 per share on BSE with a market capitalisation of Rs 1,02,293.61 crore. The stock touched an intraday high mark of Rs 17070 per share and an intraday low mark of Rs 16680 per share.

Despite sluggish growth in the mobile market, Dixon Technologies has maintained its position with its strong network and contracts with existing players. The company is already working with existing players like Motorola, Realme, Xiaomi, etc. Additionally, the joint venture with Vivo is also underway.

Dixon Technologies Joint Venture (JV) To Boost Long-Term Growth

As the company is planning to enter into a partnership with recently signed joint ventures (JVs), these acquisitions will pave the way for long-term growth. Dixon Technologies is expected to get the approval for 51:49 JV with Vivo within a few months. It will ensure a good volume support of nearly 20m to come in the JV. The company has also planned for a long-term JV in the ratio of 74:26 with Longcheer.

Dixon Technologies Valuation Outlook

The brokerage has revised its estimate to factor in higher mobile volumes and higher minority interest. "We expect a CAGR of 36%/41%/46% in revenue/EBITDA/PAT over FY25-28. With the commissioning of the display facility by 1QFY27 and completion of Q-tech stake acquisition, we expect EBITDA margin of 3.8%/4.1%/4.4% for FY26/FY27/FY28. Along with this, we also incorporate higher minority interest for JVs that will be in place over the said period," noted the brokerage in its report.

Dixon Technologies Share Price Target

The brokerage has fixed Dixon Technologies' share price recommendation as 'Buy' and see a 33% upside in the stock. "The stock is currently trading at 60.8x/46.2x P/E on FY27/28E earnings. We also incorporate the value of stake in Aditya Infotech. We reiterate our BUY rating on the stock with a revised DCF-based TP of INR22,300 (earlier INR22,100). Reiterate BUY."

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