$DIXON

Dixon Technologies shares gained more than 1% during Thursday's afternoon trading session after JM Financial Institutional Securities upgraded the stock to "Buy" from "Add" and increased its target price by 27% to ₹14,200. The brokerage said there is no longer a need to downgrade Dixon's earnings estimates, as profits from the company's joint venture with Vivo are expected to begin contributing to its profit and loss statement by the end of the September quarter. According to JM Financial, Vivo sells approximately 35–37 million smartphones annually in India, with nearly two-thirds of those volumes likely to be manufactured through the joint venture with Dixon. This could enable Dixon to produce around 24 million smartphones annually, with the full financial benefits expected to materialize by FY28. The brokerage also highlighted Dixon's expanding export opportunities and the advantages of the government's Production-Linked Incentive (PLI) scheme. These factors are expected to support the company's smartphone production targets of 63–65 million units in FY28 and 68–72 million units in FY29. Dixon remains on track to achieve its FY27 smartphone volume guidance of about 33 million units, excluding Vivo-related production. In addition, JM Financial expects the company's Information Technology (IT) and telecommunications equipment businesses to contribute significantly to its growth trajectory over the coming years.