Shares of Dixon Technologies rose sharply in Friday’s trade, climbing over 4 per cent intraday to hit a high of Rs 14,954 on the NSE, before easing to Rs 14,710 as of 1:47 PM. The rally followed an upbeat note from brokerage Nomura, even as Philip Capital flagged concerns over slowing volumes from key clients. The diverging views have reignited the bull versus bear debate on Dixon’s growth outlook through FY27.
Nomura’s Bullish Take: Growth Story Intact
Nomura reaffirmed its ‘Buy’ rating and sharply raised its target price to Rs 21,409, anticipating Dixon’s dominance in India’s mobile electronics manufacturing services (EMS) market. The brokerage expects the sector to consolidate around a handful of key players, including Dixon, DBG Technology, Bhagwati, BYD, UTL Neolync, and Tata Electronics.
Nomura emphasized Dixon’s strong Original Design Manufacturing (ODM) partnerships—particularly with Longcheer—and pointed to the equity stakes held by key clients Vivo and Transsion as factors likely to reduce client attrition. The brokerage also noted Dixon’s backward integration strategy, which should enhance operational efficiency and client loyalty.
Management’s guidance to reach smartphone volumes of 60 to 65 million units by FY27 further supports this bullish view. The upcoming joint venture with Vivo and potential business from Xiaomi and Oppo add to the upside potential.
Philip Capital’s Bearish Outlook: Risks Loom Large
In contrast, Philip Capital has trimmed its FY27 earnings estimates and issued a ‘Sell’ rating with a target price of Rs 9,085. The brokerage points to risks from declining outsourcing volumes by Dixon’s two largest clients—Motorola and Longcheer.
Once Motorola’s sole manufacturing partner in 2024, Dixon saw around 25 percent of Motorola’s monthly volumes shift to Karbonn during April-May 2025. Similarly, Longcheer has reduced its outsourcing to Dixon from 100 percent to 70 percent, with 30 percent now going to Karbonn. Given that Motorola contributes about 72 percent of Dixon’s revenue, these shifts pose a significant threat to growth.
Philip Capital also expects Motorola-related volume growth to be limited to 15 percent annually, capping upside potential. While Dixon’s JV with Vivo is set to begin operations in FY27, the brokerage remains cautious about the speed and scale of volume recovery from new clients.
What’s Next for Dixon?
This clash between bullish and bearish views underscores a pivotal moment for Dixon. On one hand, strong client partnerships, backward integration, and a consolidating EMS market create growth opportunities. On the other, concentrated client dependence and shifting outsourcing volumes raise risks to sustained earnings growth.
Investors will be watching closely for quarterly results, progress on new client additions, and developments in the Vivo joint venture to gauge whether Dixon can maintain its growth momentum through FY27.
