Dixon Technologies: Why the new display JV underpins Nomura’s 50% upside case

Electronics manufacturing services (EMS) company Dixon Technologies India is in focus after it received government approval for its joint venture with HKC Overseas. The JV will manufacture display modules in India. Following the development, the share price jumped 6% intra-day.

Nomura has maintained a ‘Buy’ rating on Dixon Technologies with a target price of Rs 14,678, which indicates a potential upside of nearly 50% from the current price. The brokerage said the target price is based on around 45 times the company’s projected earnings for FY28.