Dixon Technologies: SEBI RA Sees Potential Rally To ₹19,000 After Solid Q1 Growth

Investor sentiment remained buoyant after Dixon Technologies posted strong quarterly earnings earlier this week. The stock extended Wednesday’s gains to climb 1.5% higher to ₹16,800 in afternoon trade.

The electronic components manufacturer reported a 100% jump in consolidated net profit to ₹280 crore for Q1FY26, while revenue also nearly doubled to ₹12,835 crore. The strong performance was driven by its Mobile & Electronics Manufacturing Services (EMS) division, which accounted for 82% of operating profit and 91% of total revenue.

Management expects further profitability improvements, with a 120–130 bps margin uptick in FY26.

Technical Analysis

Dixon Technologies’ charts reflect bullish momentum, said SEBI-registered analyst A&Y Market Research. The stock recently broke out of a symmetrical triangle pattern on strong volumes, implying a bullish continuation signal.

With the immediate resistance seen between ₹16,982 and ₹17,277, a breakout above this range could unlock further upside toward the swing high of ₹19,000, the analyst noted.

Traders should monitor for sustained volume and price action to confirm the move, while any rejection near the resistance could lead to short-term consolidation, they added.

Brokerages Bullish

Brokerages responded with a largely optimistic tone. Motilal Oswal upgraded FY27 revenue and EPS estimates by 10% and retained a ‘Buy’ with a target of ₹22,100. Dolat Capital moved the stock to ‘Accumulate’ with a target price of ₹18,311.

CLSA and Nomura remained upbeat on the company’s JVs, while Morgan Stanley maintained an ‘Underweight’, citing broad-based segment misses.

Jefferies has upgraded the stock to ‘hold’ from ‘underperform’ while raising its price target to ₹15,400 from ₹13,300.

With both the chart and the fundamentals aligning, Dixon may be setting up for a strong second half, especially if it climbs above the key resistance zone, the analyst said.

Retail sentiment on Stocktwits remained ‘bullish’ amid ‘high’ message volumes.

Year-to-date losses stand at 6.4%.

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