Overview
- UBS lifted its rating to Buy and raised the target price to Rs 23,000; the stock closed Wednesday at Rs 18,161.
- UBS says backward integration into displays, camera modules, enclosures and batteries could add about 110 bps to EBITDA margins by FY28 despite mobile PLI benefits ending by FY26.
- UBS projects revenue of roughly $11 billion by FY28 versus about $2.5 billion in FY25, implying 36% revenue and 48% EBITDA CAGRs with returns supported by margin gains.
- Nirmal Bang a day earlier reaffirmed Buy with a Rs 20,798 target, valuing Dixon at 63x Sep‑27E EPS, a 15% discount to its five‑year average.
- Dixon reported FY25 revenue of Rs 38,800 crore, up 119% year on year with 3.9% operating margins, while brokers highlight contracts covering ~30% of India’s IT hardware market and strategic moves such as a Vivo JV, the Ismartu acquisition and entry into components manufacturing.