As of April 17, 2026, Motilal Oswal has reiterated a Buy rating on Dixon Technologies with a target price of ₹14,700, representing an upside of roughly 30% from its current price of ₹11,287.
This bullish stance comes even as the electronics manufacturer faces a 100% surge in memory costs and a 9% decline in India’s smartphone shipments during the early part of 2026.
5 Reasons for the Bullish Outlook
Motilal Oswal’s investment case centers on Dixon’s transition from a simple assembler to a high-value component manufacturer.
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Deep Backward Integration: Dixon is moving up the value chain by building capabilities in display modules, camera components, and precision parts. This shift is expected to structurally improve margins over the long term.
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Display Manufacturing JVs: The company has secured approvals for Liquid Crystal Module (LCM) manufacturing through joint ventures. These modules are critical for smartphones, notebooks, and automotive displays, providing a massive new revenue stream.
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Scale Benefits in H2FY27: While margins are currently under pressure due to high input costs and investment in new capacities, the brokerage expects a sharp recovery in the second half of FY27 as these new businesses achieve meaningful scale.
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Strong Financial Trajectory: Motilal Oswal projects a robust compound annual growth rate (CAGR) from FY25 to FY28:
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Revenue: 28%
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EBITDA: 32%
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PAT (Profit After Tax): 30%
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New Partnerships & Approvals: Dixon has already secured regulatory nods for optical and camera modules. A potential joint venture with a global smartphone brand is also on the horizon, which could significantly boost manufacturing volumes.
Navigating Near-Term Headwinds
The report acknowledges that the current environment is challenging, but views these as temporary obstacles.
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Memory Price Shock: Global costs for memory have doubled since December 2025. Because Dixon operates heavily in the low-to-mid price smartphone segments, these price hikes have directly hit unit volumes as brands pass costs to consumers.
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Smartphone Slump: Shipment data shows a 9% YoY drop in the first nine weeks of 2026. However, Motilal Oswal notes that value growth remains steady as the market “premiumizes”—consumers are buying more expensive phones even if they buy fewer of them.
The Verdict
While the stock trades at an elevated multiple of 55x FY28 earnings, Motilal Oswal believes the long-term catalysts—specifically the display JVs and component scale-up—far outweigh the current volume struggles.
