Dixon Technologies: Two factors why the EMS stock is on a roll today 

Shares of Dixon Technologies gained over 2% on Wednesday amid a flat move in the broader market. The  electronic manufacturing services (EMS) stock rose up to 2.55% to Rs 15,864.95 against the previous close of Rs 15,470.05 on BSE. Dixon Technologies shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. In a year, the stock has gained 26% and risen 273% in two years.  

Total 0.17 lakh shares of the firm changed hands amounting to turnover of Rs 26.24 crore. Market cap of the firm rose to Rs 95,523 crore.

JPMorgan has assigned an 'Overweight' rating to the Dixon Technologies stock. JPMorgan sees a 38% revenue CAGR over FY25E with stable margins. According to the brokerage, growth will be led by the mobile segment on the back of an increased order book from its anchor customer and the ramp-up of the Vivo JV starting Q4FY26.

The global brokerage sees more upside in mobile manufacturing, with a total addressable market of 90 million outsourced units and another 50 million in-house units that could shift to outsourcing, compared to Dixon's own target of 60-65 million units by FY27.

Another factor which pushed the stock higher today is that Lightanium Technologies Private Limited has been incorporated as a Joint Venture of Dixon Technologies (India) Limited ("Company") and Signify Innovations India Limited (“Signify”). 

"The association will bolster the Company’s manufacturing excellence and superior execution abilities and Signify’s leadership in the lighting industry. This partnership will further strengthen the Company’s foothold in the lighting business ecosystem in India in line with the Company’s strategic goals," said Dixon Technologies. 

Recently, brokerage B&K Securities initiated coverage on Dixon Technologies with a ‘Buy’ rating and a price target of Rs 18,946

Dixon is seen as a key beneficiary of India’s electronics manufacturing push and the accelerating global shift towards outsourcing, says the brokerage.  B&K said Dixon Technologies “stands at the forefront of India’s electronics manufacturing transformation”.