Rs 4,000 profit per share? Brokerages see up to 40% upside on this stock after JV nod

Shares of Dixon Technologies (India) Limited remained in focus after the company said it has received approval from the Ministry of Electronics and Information Technology for the proposed investment by HKC Overseas Limited in its subsidiary, Dixon Display Technologies Private Limited.

The company shares rose about 7.4 per cent from the previous close to the day’s high.

Dixon had signed a share subscription and shareholders’ agreement with HKC Overseas on August 16, 2025, to form a joint venture in the display manufacturing business.

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Under the proposed transaction, HKC Overseas will hold a 26 per cent stake while Dixon will hold 74 per cent in the subsidiary on a fully diluted basis. After completion of the deal, Dixon Display Technologies will become a joint venture company.

The venture will manufacture and distribute liquid crystal modules and thin-film transistor liquid crystal display modules for sectors such as mobile phones, notebooks, televisions, automotive and industrial displays, aimed at boosting domestic electronics manufacturing under the Make in India initiative.

Dixon Tech Share Price Target

Brokerages maintained a mixed view on the stock following the development, with potential upside of up to 40 per cent, or about Rs 4,177, from the current market price.

JPMorgan maintained an ‘overweight’ rating on Dixon Technologies with a target price of Rs 13,000, cut from Rs 13,700, implying an upside of about 24 per cent from the current market price of Rs 10,501.

“HKC JV approval finally comes through; increases probability of Vivo JV approval also coming,” the brokerage said.

It added that incremental EBITDA from the HKC venture has been built into estimates, but mobile volumes have been reduced due to headwinds from rising memory prices, leading to 13–14 per cent EPS cuts for FY27–FY28 estimates.

The brokerage, however, said it sees about 36 per cent earnings CAGR over FY26–FY28, driven by the company’s entry into components through Q Tech and HKC.

Jefferies maintained a ‘hold’ rating with a target price of Rs 11,350, implying an upside of about 8 per cent from the current market price.

The brokerage said despite a nearly 40 per cent fall in the stock over the past six months, Dixon still trades at around 47 times FY27 estimated earnings, above most peers.

It expects global smartphone shipments to decline about 31 per cent year-on-year in CY2026 and noted that mobile DRAM prices, which account for around 15 per cent of raw material costs, rose about 70 per cent quarter-on-quarter in the first quarter of CY2026 and could rise another 50 per cent in the second quarter.

Nomura maintained a ‘buy’ rating with a target price of Rs 14,678, implying an upside of about 40 per cent from the current market price.

The brokerage said the government approval for the Dixon-HKC joint venture for display modules will support backward integration and help improve margins.

It added that construction of the display plant is on track, with trials likely from the second quarter of FY27 and ramp-up expected in the second half of FY27. According to the brokerage, display module assembly could add around 50 basis points to Dixon’s overall margins by FY28.

Dixon Tech Share Price History

Dixon Tech shares have shown mixed performance across different time periods. It has risen about 0.97 per cent in the past week, but declined 11.72 per cent in the last month.

On a year-to-date basis, the stock is down 15.23 per cent, while it has fallen 21.95 per cent over the past year. However, the stock has delivered strong long-term returns, gaining 255.02 per cent in the last three years.

Over five years, it is down 49.02 per cent. The company currently has a total market capitalisation of about Rs 62,370.58 crore.