Wed Jul 16 04:40:00 UTC 2025: Okay, here’s a news article summarizing the provided information about Dixon Technologies:

**Dixon Technologies Shares Soar on Bullish CLSA Outlook and Strategic Agreements**

**Mumbai, July 16, 2025** – Shares of Dixon Technologies [NSE: DIXON] experienced a surge today, propelled by a bullish outlook from global brokerage firm CLSA and the announcement of two significant agreements. The stock closed at ₹16,097.20 on the BSE, a gain of 1.76%, after hitting an intraday high of ₹16,428.00, up 3.86%.

CLSA reiterated its ‘Outperform’ rating on Dixon Tech with a target price of ₹19,000, citing the company’s robust growth engine. The brokerage firm’s optimism stems from two key developments:

* **Acquisition of Q-Tech India:** Dixon Tech has signed a binding term sheet to acquire a 51% stake in Q-Tech India from Kunshan Q Tech Microelectronics (India) and its shareholders. This acquisition, through a mix of primary and secondary investment, will enable Dixon to manufacture and sell camera and fingerprint modules for mobile handsets, IoT systems, and automotive applications. Q-Tech India currently has a capacity of approximately 4 million camera modules per month.

* **Joint Venture with Chongqing Yuhai:** Dixon Tech has also entered into a binding term sheet with Chongqing Yuhai Precision Manufacturing Co. for a joint venture with a 74:26 ownership ratio. This venture will focus on manufacturing precision components for laptops, mobile phones, IoT devices, automotive products, and other applications.

CLSA estimates that these agreements, along with the existing joint venture with HKC for display modules, will significantly increase Dixon’s value addition in smartphones from the current 15-17% to approximately 45-55%. The brokerage also anticipates a potential margin expansion of 1.5-2 percentage points and the creation of new revenue streams through external sales.

Other brokerage firms share a positive outlook on Dixon Technologies. JPMorgan has an ‘Overweight’ rating with a target price of ₹17,700, predicting that the acquisition and joint venture will boost earnings. JPMorgan estimates a potential 2-3% increase in revenue/EPS in fiscal year 2026 and a 3-4% increase in fiscal year 2027, assuming the deals are completed by the September quarter.

Nomura is even more bullish, with a ‘Buy’ rating and a target price of ₹21,409. They believe that Dixon’s entry into camera module manufacturing through Q-Tech India could increase its EPS by approximately 5%.

Dixon Technologies’ stock has seen significant growth in the past year. After hitting a low of ₹10,613.00 on July 23, 2024, it surged 80.43% to reach a record high of ₹19,149.80 within five months.

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