The brokerage's positive stance follows the company's entry into the speciality electronics manufacturing services (EMS) business.

It also raised its earnings per share (EPS) estimates for FY27 and FY28 by 6-8%, incorporating the management's guidance on mobile phone volumes.

According to the brokerage, demand for smartphones is stabilising as consumers become more accepting of higher prices, while Chinese EMS players are gradually losing market share to Indian manufacturers.

The brokerage also increased its revenue estimates for Dixon's telecom and IT hardware businesses.

While it expects EBITDA to remain largely flat in the first half of FY27 due to the expiry of the Production Linked Incentive (PLI) scheme, it sees a strong acceleration in earnings growth from the second half of the financial year.

The brokerage added that higher mobile phone exports and Dixon's speciality EMS acquisition could lead to further upgrades to its earnings estimates.

Dixon Technologies (India) is a design-led solutions provider engaged in manufacturing products across consumer durables, lighting, and mobile phone segments in India.

Dixon Technologies (India) reported a 35.91% decline in consolidated net profit to Rs 297.97 crore on a 2.12% increase in revenue from operations to Rs 10,510.51 crore in Q4 FY26 over Q4 FY25.

In Q4 FY26, revenue from the Mobile & Other EMS division stood at Rs 9,485 crore (up 4.21% YoY), while Home Appliances division was at Rs 329 crore (up 8.94% YoY), and Consumer Electronics & Appliances (LED, TV & Refrigerator) division stood at Rs 697 crore (up 1.16% YoY).