Financials & valuation: Dixon Technologies

Research evidence excerpt

Financials & valuation: Dixon Technologies

roduction volumes

in a domestic market that management expects to be under pressure, and (2) making 52-WEEK PRICE (INR)

India a viable export base via explicit export-linked support and higher localisation. The 20000.00

incremental production is most realistically driven by exports, and Dixon highlighted “very 14250.00

significant traction” from two anchor customers, with a broader go-to-market plan to be

defined once final guidelines are published. Management said that the headline incentive 08/25 01/26 07/268500.00

could range from 2.5%-5%, with the upper range acting as a major export-support Target price: 16000.00 High: 18331.00 Low: 9673.00 Current: 14049.00

element. In parallel, the scheme is expected to include a ~1.5% localisation-linked benefit, Source: LSEG IBES, HSBC estimates

described as ~0.3% per component across five components – display, camera modules,

battery, mechanicals, and charger. Dixon noted it currently has direct plays in camera Vishal Goel*, CFA

Analyst, India EMS and Consumer Durables

modules and displays and will evaluate the remaining three as the scheme details settle. HSBC Securities and Capital Markets (India) Private Limited

Management expects that the scheme will be effective retrospectively from 1 April 2026, vishalgoel@hsbc.co.in

+91 0 80 6737 2115

with FY25-26 as the base year, and that eligibility will be brand-wise.

Sandesh Shetty*

Keep FY28/29 estimates unchanged: We keep our long term estimates largely Analyst, India Industrials

HSBC Securities and Capital Markets (India) Private Limited

unchanged, but trim our FY27 estimates. Given the lack of transparency on guidelines, sandesh1.shetty@hsbc.co.in

we expect FY27 estimates from the Street to be scattered. +91 89 8338 6423