Anand Rathi's research report on Dixon Technologies
The good growth momentum from Q1 continued for Dixon in Q2, largely from the cell-phone category. Backward integration in mobiles via screen manufacturing is underway while tie-ups for camera modules and mechanicals is being explored. These efforts should bear fruit from FY27. Focusing on scaling up laptops, it onboarded four clients, which control ~70-75% of the market. A manufacturing plantfor this is being set up, which should provide medium-term revenue assurance. The good growth outlook and margin expansion should drive RoCE to 40.4% by FY27, from 28.2% now.
Outlook
We retain our Buy recommendation with a higher TP of Rs.17,750.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
