The stock rose 7.10%, reaching a high of Rs 10,501 on the Bombay Stock Exchange (BSE). As of 9:44 am IST, the stock traded at ₹10,286.00, reflecting a gain of ₹482.00 or 4.92%. This surge comes after Nomura retained its ‘Buy’ rating on Dixon Technologies, predicting a potential upside of 50% based on the company’s future performance.

Nomura has suggested a target price of Rs 14,678, which is based on estimated earnings per share for FY28. The firm highlighted that the joint venture will manufacture liquid crystal display modules and thin-film transistor liquid crystal display modules, which are essential components for the electronics industry.

Dixon Technologies is planning to invest approximately Rs 1,200 crore into the display manufacturing project, which aims to strengthen India’s domestic display ecosystem and reduce reliance on imports. The company’s market capitalisation currently stands at around ₹62,550 crore.

The approval from the Ministry of Electronics and Information Technology (MEITY) clears a significant regulatory hurdle for Dixon, allowing the company to expand its operations in display manufacturing. The joint venture is expected to enhance manufacturing capacity across the electronics and automotive segments.

Nomura noted that this strategic partnership, along with the ramp-up of camera modules, will increase value addition for Dixon and provide a longer-term structural margin tailwind. The display module assembly, which accounts for roughly 10% of the bill of materials, typically carries healthy double-digit margins.

As Dixon Technologies progresses with its plans, trials for the display plant are likely to commence in the second quarter of FY27. This development is anticipated to further solidify the company’s position in the electronics manufacturing sector.

Overall, the market’s positive reception of the joint venture reflects growing confidence in Dixon Technologies’ future prospects and its commitment to enhancing India’s manufacturing capabilities.

Details remain unconfirmed.

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