Dixon Technologies (India) has become one of the most closely tracked electronics manufacturing stocks in the market.
In the latest report dated June 24, 2026, the brokerage house JM Financial has upgraded the stock to ‘Buy’ from ‘Add’ and raised its target price to Rs 14,200. This translates to an upside potential of around 17.5% from the current market price.
According to the brokerage report, improving visibility in smartphone manufacturing, expansion into new businesses and increasing localisation of components are expected to support the company’s growth over the next few years.
Let’s take a look at the key details why the brokerage house is bullish on the stock –
Smartphone business remains the biggest growth driver
According to JM Financial, concerns over slower smartphone volumes may not be as significant as they appear because rising prices of smartphones are helping offset the impact.
The brokerage noted that “Higher ASPs compensate for volume loss,”with the Average Selling Price (ASP) of smartphones increasing from around Rs 10,000 to nearly Rs 12,500-13,000. This has helped maintain revenue despite softer industry volumes.
The report added that Dixon remains on track to achieve its FY27 guidance of around 33 million smartphones excluding the Vivo joint venture.
The brokerage added, “Dixon is on track to achieve its FY27E ex-Vivo guidance of 33 milion smartphones.”
JM Financial also believes that if exports under the government’s Production Linked Incentive (PLI) 2.0 scheme gain momentum, smartphone volumes could rise further over FY28 and FY29.
Why the Vivo joint venture matters
Another major trigger, according to the brokerage report, is the proposed joint venture with Vivo.
Speaking on the synergies of the joint venture with Vivo, JM Financial highlighted that the partnership could begin contributing towards the end of the second quarter of FY27 or during the second half of the financial year.”
The brokerage estimates that Vivo sells around 35-37 million smartphones annually in India, with nearly two-thirds expected to be manufactured through this partnership.
As per the brokerage house report, this creates an opportunity of nearly 24 million additional smartphones for Dixon over time, with the full impact likely to be visible from FY28.
Beyond smartphones, new businesses are gathering pace
While smartphones remain Dixon’s largest business, JM Financial believes the company’s next phase of growth could increasingly come from other segments.
The brokerage house estimated that , “IT hardware and telecom equipment scaling up well.” The brokerage expects the Information Technology (IT) hardware business to generate around Rs 5,000 crore in revenue during FY27, supported by clients including HP, Lenovo, Acer and Asus.
The telecom equipment business is also expected to contribute meaningfully, with projected FY27 revenue of over Rs 8,000 crore. The report added that optical transceivers, supported by the company’s Gemtek joint venture, are expected to begin production in the second half of FY27 and could provide another growth avenue.
Local manufacturing of components could support profitability
Dixon is also making progress in expanding its manufacturing ecosystem through backward integration.
The brokerage said “Backward integration plans on display and camera sub-assemblies are tracking well.”
JM Financial added that these facilities could contribute meaningfully to the company’s Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) from FY28 onwards by reducing dependence on imported components and improving operating efficiency.
What investors need to know
JM Financial has upgraded Dixon Technologies to ‘Buy’, citing improved visibility from the Vivo joint venture, rising smartphone values and expansion into newer electronics segments strengthen its medium-term growth outlook. The brokerage has valued the stock at 50 times June 2028 estimated earnings per share.
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