This stock created a stir in the stock market, made a huge jump of Rs 620 in a single day; Brokerage increased the target by this much:

News Topical, Digital Desk : Dixon Technologies Share: The Indian stock market started with a surge today on 27 June. On the last trading day of the week, both Sensex and Nifty opened with gains. Out of 30 companies of Sensex, shares of 27 companies opened on the green mark.

Shares of 46 out of Nifty 50 companies also opened on the green mark. Amidst this return of enthusiasm in the stock market, today the shares of Dixon Technologies Limited are trading at Rs 14,950 with a gain of more than 4 percent, which is Rs 620 more than the previous closing price of Rs 14321.20.

Brokerage gave a target of 21409

The reason behind this rise in Dixon's shares is the rating given by brokerage firm Nomura. Nomura not only maintained its 'buy' rating on Dixon's stock, but also increased its target price to Rs 21,409.

The brokerage says that the participation of some big companies like Dixon, DBG Technology (China), Bhagwati (unlisted), BYD (Hong Kong), UTL Neolink (unlisted) and Tata Electronics (unlisted) may increase in India's mobile electronics manufacturing service (EMS) industry. Among these, Dixon is expected to have the largest market share.

What does the company do?

Nomura also said that Dixon's partnership with Longcheer for original design manufacturing (ODM) and its stake in companies such as Vivo and Transsion make it more reliable for customers. Dixon has seen a faster growth in the number of new customers than other companies.

The list of customers of Dixon Technology includes big companies like Samsung, Xiaomi, Google, Nokia (HMD Global), Oppo, Panasonic, Boat, Philips and LG. In collaboration with Dixon, these companies manufacture various electronic devices such as televisions, smartphones, set top boxes, etc. Since the number of Dixon's customers is large, in case of a decrease in demand from any one of them, the company is less at risk of suffering major losses.

Focus on products export too

Between March-May 2025, Dixon exported 4 times more products in collaboration with Transsion (Infinix, Tecno, iTel) and Motorola. Let us tell you that in collaboration with Transsion, Dixon manufactures smartphones for many companies like Motorola, Google Pixel and also aims to export more and more units.

Nomura says Motorola, which sells about 10 million units in the US, is primarily sourced from China. Trump's tariff policy could lead to its manufacturing base shifting to India, benefiting India's local mobile electronics manufacturing service (EMS) industry.

The company's March quarter results were also excellent. In the March quarter of FY25, Dixon Tech's net profit increased four times to Rs 464.95 crore. The company's operational revenue stood at Rs 10,292.54.