Dixon Technologies shares rise 7%, up 50% from 52-week low; here's why

Shares of Dixon Technologies rose over 7% in early deals on Thursday after the consumer electronics firm received a rating upgrade from global brokerage HSBC. It upgraded the stock to buy and raised its target price to Rs 16,000 per share, a 17% upside from the previous close. 

With today's rally, the stock has gained 50% from the 52-week low of Rs 9605 reached on March 30, 2026. 

The stock has a RSI of 68.1, indicating the stock is trading near the overbought zone. A stock with RSI above 70 mark indicates its overbought on charts. 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 is bullish for the market leader in its segment. 

The rating upgrade comes after the Union Cabinet's nod to Rs 62,500 crore Mobile Phone Manufacturing Scheme (MPMS). This replaced the earlier PLI scheme for electronics manufacturing, which officially ended on March 31, 2026. The scheme will help India to move beyond assembling and manufacturing smartphones and build its own smartphone brands and design phones within India

According to the brokerage, the government's new mobile phone manufacturing incentive scheme has eased concerns surrounding the expiry of the earlier Production Linked Incentive (PLI) programme, providing greater earnings visibility for the company's largest business segment. It believes the policy support strengthens the long-term growth outlook for the mobile handset business.

The brokerage also noted that concerns over customer retention and potential margin pressure have moderated significantly. Reflecting this improved outlook, it has raised its operating margin estimates for the mobile phone segment by 30 basis points and increased its valuation multiple to 48 times earnings.

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.