Dixon Technologies, a key player in India’s electronics manufacturing services (EMS) sector, has earned a strong endorsement from B&K Securities. The brokerage initiated coverage on the stock with a bullish ‘Buy’ rating, projecting a 25% upside driven by global shifts toward outsourcing electronics production. As reported by The Economic Times, B&K sees Dixon as strategically poised to capitalize on robust demand, supported by the Indian government’s Production Linked Incentive (PLI) schemes.
The report highlights Dixon’s expanding manufacturing footprint across mobile phones, consumer electronics, LED TVs, and wearables. Analysts pointed out the company’s low-capex, high-return business model and its diverse customer base as strong drivers for sustained growth. Moreover, Dixon’s increasing contribution from exports and high-margin verticals further strengthens its investment appeal.
Promoter Offloads 2.77% Stake Worth ₹2,221 Crore
In a parallel development, promoter Sunil Vachani sold a 2.77% stake in Dixon Technologies, amounting to over ₹2,221 crore. The transaction involved nearly 3.27 million shares, according to a report from MSN.
While some market participants viewed the move with caution, analysts were quick to point out that such transactions often reflect financial planning or portfolio rebalancing rather than diminished confidence in the business. The sale has not altered Dixon’s fundamentals, which remain strong. Market experts suggest that the promoter’s exit could enhance stock liquidity and broaden institutional participation.
Stock Rallies Amid Midcap Surge, Investor Confidence Builds
Despite the promoter stake sale, Dixon Technologies has continued to gain on the stock market. It emerged as one of the top performers on the Nifty Midcap 150 index alongside peers like Nykaa and Petronet LNG, according to Moneycontrol via TradingView.
NDTV Profit further reported that Dixon’s momentum is underpinned by its order book strength, robust financials, and increasing contribution from high-margin product categories. B&K’s target price of ₹9,000 per share underscores the confidence in its long-term value proposition.
With India’s growing ambition to become a global manufacturing powerhouse, Dixon Technologies stands out as a critical enabler of that vision. As foreign and domestic interest in EMS continues to rise, Dixon is well-positioned to ride the wave — making it a stock to watch closely.
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