Best Investment Manager Reveals: Dixon Technologies India Ltd (DIXON:IN) Stock Rated Buy by Nomura/Instinet with INR 15,567.00 Price Target
As the world's best investment manager, I am excited to share the latest news about Dixon Technologies India Ltd (DIXON:IN). Nomura/Instinet has given this stock a Buy rating with a price target of INR 15,567.00. This firm has recognized Dixon Technologies as a leading Indian Electronics Manufacturing Services (EMS) provider, highlighting its expansive product portfolio and growing customer base.
Dixon Technologies is a key player in the Indian market, manufacturing a significant portion of televisions, lighting, and semi-automatic washing machines, with market shares of approximately 35%, 50%, and 30% respectively in these segments. The company has shown impressive growth in its mobile segment over the past three fiscal years, increasing revenue contribution from 24% to 52%. This growth can be attributed to new customer acquisitions, effective execution, competitive costs, and the distribution of production-linked incentive (PLI) benefits.
Strategic moves by Dixon Technologies, such as acquisitions and partnerships like the one with Longcheer in FY24, are projected to meet over 30% of India's smartphone demand by FY27F. With a strong clientele base in the domestic mobile industry, there is potential for further expansion.
Furthermore, the prospects for Dixon Technologies may be boosted by potential exports of mobile phones. The company has already started exporting to the United States through partnerships like the one with Motorola (NYSE:). Considering the large Total Addressable Market (TAM) for mobile phone exports, this could be a significant growth opportunity for Dixon.
Analysis: Dixon Technologies India Ltd (DIXON:IN) has received a positive Buy rating from Nomura/Instinet, with a price target set at INR 15,567.00. This indicates confidence in the company's growth prospects and market position. Investors may consider this information when making investment decisions, as Dixon Technologies shows potential for further expansion and growth in the Indian electronics manufacturing sector.