Dixon Tech Shares: SEBI RA Flags A Strong Buy Amid Strategic Expansion Moves

Dixon Technologies shares rose 2% on Wednesday, driven by a brokerage’s bullish note and its plans to expand its presence in the lighting sector.

Dixon formed a 50:50 joint venture with Signify Innovations India, a global lighting leader, to develop lighting products and accessories. Gupta highlighted that this adds a new revenue stream and strengthens its OEM positioning in the electricals space. 

JPMorgan has initiated coverage with an "Overweight" rating, projecting 38% revenue CAGR over FY25E with stable margins. According to the brokerage, growth will be led by the mobile segment, driven by an increased order book from its anchor customer and the ramp-up of the Vivo JV starting in Q4FY26.

SEBI-registered analyst Vijay Kumar Gupta is closely tracking Dixon Technologies as a fundamentally strong candidate for short-term upside. He believes that the company is riding the 'Make in India' wave and executing aggressively across multiple high-growth verticals. The recent JV and product diversification are setting the stage for a valuation re-rating.

In other news developments, the company recently signed a deal to manufacture robotic vacuum cleaners for a leading brand. With this, Dixon is entering the premium home care appliance market, which is margin-accretive and in high demand following the COVID-19 pandemic. 

Dixon is among the first firms to get land near the upcoming Noida International Airport for an electronics cluster. Plans are already in motion to set up plants for mobile, lighting, white goods, and consumer electronics. 

FY25 revenue crossed ₹38,000 crore with net profit at ₹1,200 crore, up over 3 times year-on-year (YoY). Its fourth quarter (Q4) saw revenues rise 121% and profits surge 322%. This shows strong scalability and execution across product lines. 

Gupta also noted that the company's recent promoter sell-off of 2.77% worth ₹2,200 crore seemed strategic and doesn’t change the company’s growth trajectory or governance strength.

Dixon Tech shares have fallen 12% year-to-date (YTD).

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