Global brokerage firm Macquarie has reiterated its bullish stance on Dixon Technologies (India) Ltd. and flagged potential upside from the company's proposed joint venture with Vivo. According to reports from CNBC TV18, the brokerage has maintained its 'Outperform' rating on the stock with a price target of ₹15,000, implying an upside of around 17% from Wednesday's closing price of ₹12,832.55. The positive outlook follows similar assessments from JPMorgan, which retained its 'Overweight' rating with a price target of ₹12,700. Recent trading data shows the stock opened at ₹12,860 with a trading range between ₹12,760-₹12,930.
The government is likely to approve the long-pending Dixon-Vivo joint venture this month, with an inter-ministerial panel reportedly granting in-principle approval. As reported by CNBC TV18, final clearance is expected following due process at the Ministry of Electronics and Information Technology (MeitY). The company had entered into a binding term sheet with Vivo Mobile India in December 2024 to establish a joint venture focused on manufacturing electronic products, including smartphones, though regulatory approvals remain pending.
During its fourth-quarter earnings call, Dixon Technologies had guided for FY27 revenue of ₹560 billion, excluding contributions from both the Vivo joint venture and the PLI 2.0 scheme. According to reports from CNBC TV18, the brokerage views both the Vivo partnership and PLI 2.0 as key upside catalysts to the company's medium-term growth prospects and localisation strategy. The company's shares ended Wednesday's session 4.97% higher at ₹12,832.55.
While some brokerages remain optimistic, others express caution about the stock's valuation. As reported by CNBC TV18, among the 32 analysts covering the stock, 22 have a 'Buy' rating, three recommend 'Hold', while seven have a 'Sell' rating. CLSA downgraded the stock to 'Underperform' from 'Hold', retaining its price target of ₹10,400, citing excessive rally expectations and potential declining organic volumes due to elevated memory prices.
