Dixon Technologies shares rose 1.35% to Rs 12,249 following a brokerage upgrade. The firm raised its recommendation from 'add' to 'buy' and increased the target price from Rs 11,200 to Rs 14,200.
The upgrade follows expectations that a joint venture with Vivo is nearing regulatory approval. This partnership is projected to contribute to earnings during the 2027 fiscal year. Vivo sells approximately 35 million to 37 million smartphones in India every year. The collaboration could add 20 million to 22 million units to Dixon's production capacity over time.
Higher average selling prices for smartphones are expected to support revenue growth. This outlook persists despite rising global memory chip costs affecting the budget handset segment.