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Dixon Tech may rally 30% as long-term triggers outweigh near-term headwinds: Motilal OswalIn the near term, however, Dixon Tech is likely to face pressure on volumes and margins over the next 2-3 quarters due to higher input costs and the gradual phase-out of PLI benefits.By Meghna Sen  April 17, 2026, 9:40:34 AM IST (Published)2 Min ReadShares of Dixon Technologies Ltd. were trading higher on Friday, April 17. Brokerage firm Motilal Oswal reiterated its 'Buy' rating on the stock with a price target of ₹14,700, implying an upside of around 30% from current levels.

The brokerage said that memory prices have surged sharply, rising over 100% since December 2025 and remaining elevated through March 2026. This has led smartphone makers to increase prices across both existing models and new launches.

Major brands such as Samsung, Oppo, Xiaomi, Realme, Nothing, and Vivo have raised prices by up to 40% for select models, with an average increase of around ₹1,500.

Further hikes are likely as companies try to pass on higher input costs.

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While this trend may weigh on volumes, especially in the low- and mid-range smartphone segments, Motilal Oswal believes Dixon stands to benefit from multiple structural tailwinds.

These include easing of the PN3 approval process, which could support approval of the Dixon-Vivo joint venture, along with progress on its 74:26 JV with HKC for display modules and expected approvals under the ECMS scheme.

In the near term, however, the company is likely to face pressure on volumes and margins over the next 2-3 quarters due to higher input costs and the gradual phase-out of PLI benefits.

Margins are expected to remain under pressure until the first half of FY27. Beyond that, backward integration initiatives are likely to support margin expansion.

The brokerage estimates EBITDA margins of 3.6% for FY27 and 4.3% for FY28.

The stock is currently trading at 65.0x and 43.4x its FY27 and FY28 earnings, respectively.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsDixon TechDixon Technologiesshare market today