DIXON

Dixon Technologies (India) Ltd surged more than 7 percent in early trading on Thursday after HSBC upgraded the stock to 'Buy' and raised its target price, citing stronger earnings visibility following the government's approval of a new incentive scheme for mobile phone manufacturing. The company's shares jumped 7.4 percent to Rs 14,656, extending Wednesday's 2.5 percent gain and emerging as the top performer on the BSE Midcap index. The rally pushed Dixon Technologies' market capitalisation to nearly Rs 83,770 crore. Investor sentiment strengthened after the Union Cabinet approved the Rs 62,500 crore Mobile Phone Manufacturing Scheme (MPMS), which will replace the earlier Production-Linked Incentive (PLI) scheme for smartphones. Announced alongside the second phase of the India Semiconductor Mission, the new programme aims to accelerate domestic manufacturing, boost exports, and generate employment across the electronics sector. The government's latest policy initiatives have further improved the outlook for the electronics manufacturing services (EMS) industry. Brokerage firms believe Dixon Technologies is among the biggest beneficiaries of the new incentive framework, given its market leadership, manufacturing scale, and strong presence in smartphone production.