Shares of Dixon Technologies Ltd. will be in focus on Monday, July 6, after brokerage firm Investec reiterated its 'Buy' rating on the stock and raised its price target to ₹16,200 from ₹14,500.
The revised target implies a potential upside of nearly 30% from Friday's closing price.
Investec has raised its FY27-FY28 earnings per share (EPS) estimates by 6-8%, factoring in the company's previously guided mobile handset volumes, which are expected to remain largely flat in FY27 excluding Vivo.
The brokerage said its channel checks with electronics retailers indicate that mobile phone demand has begun stabilising, with consumers showing greater acceptance of higher prices. It also believes Chinese electronics manufacturing services (EMS) companies are gradually losing market share to Indian peers.
In addition, Investec has increased its revenue estimates for Dixon's telecom and IT hardware businesses.
Despite the expiry of the Production Linked Incentive (PLI) scheme, the brokerage expects Dixon to report broadly flat year-on-year EBITDA during the first half of FY27, followed by a strong acceleration in earnings growth in the second half.
Investec also sees further upside from a potential recovery in mobile exports, particularly if the proposed PLI 2 scheme is implemented, along with the company's planned entry into the speciality EMS segment through acquisitions.
These developments could lead to additional earnings upgrades, the brokerage said.
According to Bloomberg data, 22 of the 32 analysts tracking Dixon Technologies have a 'Buy' rating on the stock, while three recommend 'Hold' and seven have a 'Sell' call.
Dixon Technologies shares ended Friday's session 0.64% higher at ₹12,455.10. The stock has gained about 3% so far this year.