Dixon Technologies shares: Up 49% from 52-week low, can the EMS stock reach Rs 23,000 mark?

Shares of Dixon Technologies, which have delivered multibagger returns of 321% in three years and 976% in five years. look set for further upside in a year, believes global brokerage UBS. The EMS stock has been upgraded to 'buy' with a target price of Rs 23,000 per share, an upside of 27% from the previous close of Rs 18,133. 

According to the brokerage, the company is entering a new growth phase through backward integration into non-semiconductor smartphone components.

This could push the EBITDA margin by 110 Bps by FY28 against consensus of 40 Bps. 

Dixon Technologies is expected to benefit from entry into key areas such as displays, camera modules, enclosures, and batteries, which should support both growth and margin expansion.

Meanwhile, the stock of the electronics manufacturing services (EMS) firm closed 0.14% higher at Rs 18,157 in the previous session on BSE. Market cap of the firm rose to Rs 1.09 lakh crore. The stock has gained 49% from its 52 week low of Rs 12,326.60 reached on April 7 this year. 

Turnover rose to Rs 9.15 crore as 5043 shares of the firm changed hands on BSE. 

Shares of Dixon Technologies are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages, signalling the trend has been on a positive side for the market leader in its segment. 

The relative strength index (RSI) of Dixon Technologies stands at 65.5, signaling it's trading in the neither in the overbought nor in the oversold territory.

Dixon Technologies (India) is the largest home-grown design-focused and solutions company engaged in contract manufacturing products in the consumer durables, lighting and mobile phones markets in India.