Buy Dixon Technologies; target of Rs 21,875: Anand Rathi

About this update from Dixon Technologies (india) Ltd.

Anand Rathi's research report on Dixon TechnologiesDixon Technologies has signed a binding term sheet with vivo India to undertake OEM business of electronic devices, including smartphones. The company would hold 51% stake in the JV, while vivo India would hold 49%, with no cross-stakes between them. The tie-up will enable the company to manufacture non-Vivo phones too, thus increasing capacity from the current 50m phones pa (40-45% of outsourcing opportunity). Post onboarding vivo, the company now has tie-ups with all major Android brands.OutlookWe expect it to benefit from ongoing mobile manufacturing localisation tailwinds regardless of market share movement among brands. The good growth outlook and margin expansion should drive RoCE to 46.4% by FY27, from 28.2% now. We, thus, retain our Buy rating, with a higher TP of Rs 21,875.For all recommendations report, click hereDisclaimer: 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.Dixon Technologies - 17122024 - anand

View stock analysis, news, and events for Dixon Technologies (india) Ltd.