1 hr ago

Dixon Technologies May Reach 38-40 Million Smartphones by FY27

Dixon Technologies makes smartphones and other electronic products.

It may produce 38-40 million smartphones in the financial year ending in 2027.

Vivo is expected to start adding production orders in the third quarter of FY27 and increase them in the fourth quarter.

Motorola and Transsion exports are also expected to help the company reach its target.

Dixon is working on making display and camera parts itself.

These new capabilities could help the company earn better margins in FY28 and FY29.

The company has also started making products for HP, Acer, Lenovo and Asus.

However, higher memory costs could keep smartphone prices high and limit profit margins in the near term.

Key facts

FY27 smartphone volume: Estimated at 38-40 million units.
Vivo ramp-up: Expected to begin in Q3FY27 and accelerate in Q4FY27.
Margin outlook: Display and camera sub-assembly are expected to add 50-60 basis points in FY28E and 100-120 basis points in FY29E from current levels.
FY29 exports: Around 10-15 million smartphones could be export-led.
Display investment: Dixon plans to invest Rs 1,200 crore in display sub-assembly.
Display capacity: Planned capacity includes 55-60 million smartphone displays and around 2 million IT hardware displays, plus automotive displays.
Analyst stance: The note maintained an ADD rating with a target price of Rs 14,800, while cutting FY27E-FY29E EPS estimates by 2-4%.

businesstoday.in · 9 hrs ago