Dixon Technologies shares: Four factors why JM Financial upgraded the EMS stock 

Dixon Technologies share price target: Brokerage JM Financial has upgraded Dixon Technologies to a 'buy' against the earlier 'Add' call. The upgrade for the Electronics Manufacturing Services (EMS) stock comes at a time when the stock has fallen 35% from its 52-week high of Rs 18,471 reached on September 25, 2025. On Thursday, Dixon Technologies stock closed flat at Rs 12,010. Market cap of the firm stood at Rs 73,367 crore. 

Turnover rose to Rs 73.76 crore as 0.60 lakh shares of the firm changed hands on BSE. 

Shares of Dixon Technologies are trading higher than the 20 day, 30 day, 50 day, 100 day, 150 day, 200 day but lower than the 5 day and 10 day moving averages, signalling the trend is mixed for the market leader in its segment. 

The relative strength index (RSI) of Dixon Technologies stands at 54, signaling it's trading neither in the oversold nor in the overbought territory.

Meanwhile, JM Financial assigned a buy call on the Dixon stock with a price target of Rs 14,200 against the previous target of Rs 11,200. This amounts to a 27% upside from the previous close. 

The brokerage cited four key factors behind its bullish stance on the EMS stock. 

1. Higher ASPs compensate for volume loss

The brokerage believes higher average selling prices (ASPs) are helping offset weaker smartphone shipments in the June quarter as rising component costs push up device prices. It estimates the average smartphone ASP has increased to around Rs 12,500– Rs 13,000 from nearly Rs 10,000 earlier, cushioning the impact of lower volumes.

Following discussions with Dixon Technologies, the brokerage said the company remains on track to achieve its FY27 smartphone shipment guidance of around 33 million units (excluding Vivo), compared with its own estimate of 31 million units. Growth is expected to be driven by market share gains with select customers while maintaining its position with its key client. Smartphone volumes could receive an additional boost if the proposed Vivo joint venture and exports under the government's PLI 2.0 scheme materialise, paving the way for shipments of 63–65 million units in FY28 and 68–72 million units in FY29.

2. Vivo JV nod could unlock a major growth opportunity

The brokerage expects regulatory approvals for Dixon's joint venture with Vivo to come through soon. It believes commercial production could begin roughly two months after approvals are received.

Vivo sells around 35–37 million smartphones annually in India, with nearly two-thirds of these expected to be manufactured through the proposed joint venture. The remaining production is likely to continue through Bhagwati Products and its ODM partner, Huaqin. This creates an opportunity for Dixon to manufacture nearly 24 million additional smartphones annually.

3. IT hardware and telecom businesses continue to scale up

The brokerage also highlighted steady progress in Dixon's IT hardware business after multiple delays. Manufacturing for clients including HP, Lenovo, Acer and Asus has started gaining momentum. Management reiterated its revenue guidance of Rs 5,000 crore for the IT hardware segment in FY27, with the potential to grow to Rs 9000 crore–Rs 10,000 crore in FY28 and exceed Rs 14000 crore–Rs 15000 crore by FY29. Future growth is expected to be supported by expansion into servers and accessories through the company's joint venture with Inventec.

4. Backward integration strengthens long-term earnings outlook

The brokerage noted that Dixon's strategy of increasing backward integration remains on schedule and should improve profitability over the coming years.

Its display module manufacturing facility, being set up in partnership with HKC, is expected to begin production by the fourth quarter of FY27. The facility will initially have the capacity to manufacture around 24 million smartphone display modules annually, with capacity projected to expand to 55–60 million units by FY29.

"We up our FY27-29E EPS by 1-10% factoring in higher ASPs and non-smartphone ramp-ups, rolling over valuation to Jun’28E (from Mar’28E), and raising target multiple to 50x (from 45x), given improved visibility from Vivo JV. Hence, we upgrade Dixon to BUY (from ADD) with a TP of Rs 14,200 (from Rs 11,200)," JM Financial said.