Dixon Tech shares rise up to 6% as Investec sees strong earnings growth from H2FY27

About this update from Dixon Technologies (india) Ltd.

Dixon Technologies shares rose as much as 6 percent on Monday after brokerage Investec maintained its 'buy' rating on the stock and raised its target price following the company's foray into the speciality electronics manufacturing services (EMS) business.The stock has extended its gains for the fifth straight session and has risen more than 10 percent during the period.In today's session, it made a high of Rs 13,161 per share on the NSE, up 5.65 percent. Dixon Tech was also the top gainer in the Nifty midcap 100 index.Investec has raised its target price on Dixon Technologies to Rs 16,200, implying an upside potential of around 30 percent from Friday's closing level.The brokerage also increased its earnings per share (EPS) estimates for FY27 and FY28 by 6-8 percent, factoring in the management's earlier guidance on mobile phone volumes.According to Investec, mobile demand is stabilising as consumers are accepting higher prices, while Chinese EMS players are gradually ceding market share to Indian peers.The brokerage has also raised its revenue estimates for the company's telecom and IT hardware businesses.It expects EBITDA to remain largely flat in the first half of FY27 due to the expiry of the Production Linked Incentive (PLI) scheme, but sees strong earnings growth from the second half of the financial year.Investec said higher mobile exports and the company's speciality EMS acquisition could lead to further upgrades in earnings estimates.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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