Dixon Technologies shares the shares that rise as UBS upgrade to buy the rating, see 27% a top

Dixon Technologies shares rose more than 1.4% until their day on RS 18,400 at the NSE on the NSE on Thursday 25 September, after the global brokerage bullish became on the shares, the upgrade to a ‘buy’ rating and a price target of RS 23,000 per share. Analysts imply an upward potential of almost 27% compared to the last closure of RS 18.161. With today’s profit, the shares are able to do a second consecutive session.

According to a CNBC TV-18 report, UBS said that Dixon is well placed to ride the next stage of his growth cycle while it is spreading to non-half-conductor smartphone components such as displays, cameramodules, housings and batteries through backward integration. The brokerage expects that this step will increase the EBITDA margins by 110 basic points per FY28E compared to a profit of 40-based point, with consensus estimates, even if the mobile production-connected incentive (PLI) schedule is set by FY26.

Also read: Watch out! RS 2,000 crore of shares to enter the market in the next 3 months. Check key names

The global company also marked the rapid inorganic expansion of Dixon – including partnerships such as Signify JV, Longcheer JV, ISMARTU ACQUISITION, VIVO JV and Inventec JV – as an important engine engine. These companies will help the company to tap into a larger addressable market, introduce new categories, to deepen vertical integration and forge more global collaborations.

UBS predicts Dixon’s income to reach $ 11 billion (approximately RS 91,500 crore) by FY28E, which is about 2.5 times the projected income for FY25. In addition to FY28E, growth can be supported by the sale of components that go beyond captivity, rising exports, new verticals such as networks and servers and further inorganic opportunities.

The brokerage added that the company’s ability to scale up the activities without recovering returns is supported by the expected margin extension, which should compensate for the turnover of the lower assets. However, it marked a delayed disaster in the component company as an important risk to the prospects.

Read more: Hyundai shares collect nearly 90% from the April low. Can it become a multibagger?

Q1 Performance Snapshot

The company reported a consolidated net profit of RS 280.02 Crore for the first quarter ending in June 2025, with 100% rising on an annual basis (YOY) (YOY) compared to a profit from RS 139.70 CRORE in the corresponding quarter of last year. corresponding quarter of FY25.

Profit, tax, depreciation and amortization (EBITDA) for the quarter of June was RS 484 Crore, an increase of 89% compared to RS 256 Crore a year earlier.

At 9:20 am shares of the company acted on RS 18,315, with 0.85% of the last closure. In the past two years, the share has risen by 277%, risen from RS 4,809 to RS 18,000 levels.

((Indemnification: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)