Why Dixon Technologies shares may rally up to 30% - Explained by brokerages

Dixon Technologies price targets 2026: Shares of Dixon Technologies are likely to rise 30% despite near term challenges, according to brokerage Motilal Oswal Financial Services. The share price target for Dixon Technologies stands at Rs 14,700 against the previous close of Rs 11,287. 

In the current session, market cap of the EMS firm stood at Rs 68,797 crore. The stock was trading on a flat note at Rs 11,315 in the afternoon session. Total 0.26 lakh shares changed hands amounting to a turnover of Rs 29.01 crore. 

The EMS stock hit its 52-week low of Rs 9605 on March 30, 2026. 

Amid the ongoing market volatility, the Dixon Tech stock is down 32% in a year. 

In terms of technicals, shares of Dixon Technologies are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day but lower than the 100 day, 150 day, and 200 day moving averages, signalling the trend is weak for the market leader in its segment. However, the relative strength index (RSI) of Dixon Technologies stands at 60.7, signalling the stock is trading neither in the oversold nor in the overbought territory.

Motilal Oswal said due to high memory prices, several smartphone players have started increasing prices to pass on higher costs. 

"As expected earlier, this is likely to impact overall
volumes of smartphone markets, particularly low and mid-range smartphones, said MOSL. 

The brokerage expects near-term impact seen on volumes due to recent memory price hikes and weak demand.

"Despite the volume impact, we see positives in 1) government relaxing PN3 approval process, thereby hoping that Dixon-Vivo JV will be approved soon; 2) approval for 74:26 JV of Dixon with HKC for display modules; and 3) ECMS approval for Dixon’s display modules," MOSL said. 

"In the next 2-3 quarters, Dixon will see the impact of lower volumes and margins amid the end of PLI benefits, after which backward integration benefits will boost margins. We reiterate BUY with a TP of Rs 14,700, implying 55x P/E multiple on Mar’28E EPS," added the brokerage. 

Global brokerage HBSC has a 'hold call' with a target price  of Rs 11500 on the Dixon Technologies stock. 

The brokerage expects FY27 volumes to take a hit since  VIVO JV approval has not yet come through. It expects the EMS firm to clock a moderate growth in Q4. However focus is on Q1 of the new fiscal as costs remain volatile for Dixon Technologies. 

The brokerage cut FY27 estimates by 8% as VIVO-JV delay erodes top-line growth. 

Mirae Asset Sharekhan has a price target of Rs 14,400 on the Dixon stock implying an upside of 28% from the previous close of Rs 11,285.90 on BSE. 

BOB Capital has a price target of Rs 11,400 on the stock. 

The brokerage has revised its FY27–28 EPS estimates to factor in the elevated memory-price-led concerns, delays in the Vivo JV ramp-up and the increasing competitive intensity. 

"While growth in IT hardware, telecom and components should partly offset weaker mobile volumes, we cut EPS more sharply than revenue/EBITDA to reflect higher non-controlling interest from JV-led structures, including Longcheer, Q-Tech and HKC. At CMP, the stock trades at 40x FY28E EPS," said BoB Capital 

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.