Archive · 22 Sep 2026
Nuvama Raises Dixon Target Despite Lower FY27 Earnings Estimate
Nuvama is a brokerage that studies Dixon’s business and shares.
It increased the price target for Dixon’s shares but still advised investors to hold them.
Nuvama expects Dixon’s earnings in FY27 to be lower than previously estimated.
This is mainly because a joint venture with Vivo may begin contributing later than expected.
However, Nuvama expects earnings in FY28 to be stronger because Dixon’s components business may grow faster.
The smartphone market may shrink because memory chips have become more expensive.
Dixon’s phone sales may also fall, but the company could still gain market share.
Dixon expects telecom and IT hardware to become important parts of its business.
It also plans to increase exports, phone production and revenue over time.
Nuvama raised Dixon’s September 2027 target price to Rs 14,800 from Rs 13,700 while retaining a ‘Hold’ rating.
Nuvama cut Dixon’s FY27 earnings-per-share estimate by 7% because consolidation of the Dixon-Vivo joint venture may be delayed.
The brokerage raised its FY28 EPS estimate by 9% because Dixon’s components business is expected to scale up faster.
Dixon’s Q2FY27 smartphone volumes are estimated at 94–95 lakh units, down 10–12% year over year but implying market-share gains.
Telecom and IT hardware revenue is projected at Rs 6,500–7,000 crore and above Rs 6,000 crore, respectively, in FY27.
- Who
- Dixon Technologies and Nuvama; the Dixon-Vivo joint venture is also central to the update.
- What
- Nuvama raised Dixon’s price target while cutting its FY27 EPS estimate and raising its FY28 EPS estimate.
- When
- The estimates concern FY27 and FY28; the Dixon-Vivo joint venture is now expected to become commercial in Q3FY27 rather than October 2026.
- Where
- The article discusses Dixon’s domestic smartphone market and business operations; no specific location is provided.
- Why
- The target was raised because components are expected to scale up faster, while FY27 EPS was cut because Vivo joint-venture consolidation may be delayed.
- Price target
- Raised to Rs 14,800 for September 2027 from Rs 13,700.
- Brokerage view
- Nuvama maintained a ‘Hold’ rating.
- FY27 EPS estimate
- Cut by 7%.
- FY28 EPS estimate
- Raised by 9%.
- Q2FY27 smartphone volumes
- Estimated at 94–95 lakh units, down 10–12% year over year.
- FY27 telecom revenue
- Anticipated at Rs 6,500–7,000 crore, representing 40% year-over-year growth.
- FY27 IT hardware revenue
- Expected to exceed Rs 6,000 crore, representing 275% year-over-year growth.
- Valuation basis
- The target is based on 50 times September 2028 EPS; Dixon trades at 54 times FY28E EPS.