Dixon Technologies (India): Growth narrative strengthening further

Research evidence excerpt

Dixon Technologies (India): Growth narrative strengthening further

Global Research

16 July 2026ab

Dixon Technologies (India) Equities

IndiaGrowth narrative strengthening further

Consumer Electronics

12-month rating Buy

Favourable policy environment underpins smartphone manufacturing growth

India's government Cabinet approved the Mobile Phone Manufacturing Scheme 12m price target Rs16,300.00

(MPMS) with a Rs625bn outlay, aimed at boosting production, local value addition, Prior : Rs13,700

supply-chain resilience and global competitiveness. While further details of the scheme

Price (15 Jul 2026) Rs13,667

are expected in the next four weeks, preliminary highlights include the scheme running

for FY27-31, offering incentives of 2.25-5.0% on eligible sales for mobile phone RIC: DIXO.BO BBG: DIXON IB

manufacturing, with up to a 1.5% additional incentive for domestic sourcing of key

Trading data and key metrics

components and sub-assemblies. Indian brands will also be eligible for an extra 3%

52-wk range Rs18,327.00-9,669.50

incentive on qualifying design and R&D spending. We view the scheme as a positive for

the mobile manufacturing ecosystem, with Dixon as a key beneficiary, given its Market cap. Rs811b/US$8.43b

leadership and strong execution track record in smartphone manufacturing, with Shares o/s 59.3m (ORD)

investment in backward integration. Free float 54%

Avg. daily volume ('000) 655

Re-entering a phase of accelerated revenue growth Avg. daily value (m) Rs7,634.7

After a 54% revenue CAGR in FY22-25, Dixon's growth moderated to 26% in FY26 due Common s/h equity (03/26E) Rs46.8b

to delayed Vivo JV approval and memory inflation. With the recent PN3 approval, we P/BV (03/26E) 17.8x

expect revenue growth to re-accelerate (+42%/+41% in FY27/FY28).