Dixon Technologies share price jumps 7% after govt clears HKC JV

Dixon Technologies share price surged by as much as 7%, reaching a day’s high of ₹10,501 on the BSE on Tuesday, March 10, following the approval from the Ministry of Electronics and Information Technology (MeitY) for a joint venture with the Chinese company HKC Overseas Ltd. to produce display modules.

The company announced that its fully owned subsidiary, Dixon Display Technologies Pvt. Ltd (DDTPL), will be transitioned into a joint venture entity. Dixon will retain a 74% ownership stake in the venture, while HKC Overseas will possess the remaining 26%.

After the deal is finalised, Dixon Display Technologies will function as a joint venture. The collaboration aims to merge Dixon’s local manufacturing strengths with HKC’s international expertise to enhance the production of advanced display modules tailored for India's electronics and automotive industries.

The joint enterprise will produce, enhance, and distribute thin-film transistor LCDs, liquid crystal modules, and other sophisticated display components. These products will cater to a broad array of uses, such as laptops, smartphones, televisions, automotive displays, industrial machinery, and monitors.

Dixon Technologies anticipates that this venture will contribute to strengthening India’s domestic electronics manufacturing framework, lessen dependence on imports, and bolster the local component supply chain in line with the government’s Make in India initiative.

Here's what brokerages say

Brokerage firm Nomura has estimated a potential upside of 49.6% for the stock, while JPMorgan maintains an 'overweight' rating, as reported by CNBC TV18.

Nomura has given Dixon Tech a 'buy' recommendation with a price target of ₹14,678 per share. The news report indicated that backward integration into display modules will provide a structural margin advantage.

Dixon Tech's display plant is progressing according to schedule, with trials expected to start in the second quarter of the financial year 2027 and a ramp-up anticipated in the latter half of FY27, according to Nomura.

As per the CNBC TV18 report, JPMorgan has an 'overweight' position on the stock but has reduced its price target to ₹13,000 from the earlier ₹13,700.

The approval of the joint venture (JV) enhances the likelihood of obtaining approval for the Vivo JV as well.

The firm has factored in additional EBITDA from the HKC JV into its projections but has reduced mobile volume estimates due to persistent challenges posed by rising memory prices. As a result, this is expected to lead to EPS reductions of 13-14% for fiscal years 2027-2028, according to an analyst cited in a CNBC TV18 news report.

JPMorgan expressed a positive outlook on Dixon Tech, maintaining an 'overweight' rating, as it anticipates a robust 36% compound annual growth rate (CAGR) in earnings over fiscal years 2026-2028, driven by components introduced via Q Tech and HKC, as mentioned in the CNBC TV18 news report.

Dixon Technologies share price today

Dixon Technologies share price today opened at ₹10,400 apiece on the BSE, the stock touched an intraday high of ₹10,501, and an intraday low of ₹10,190.05.

According to Anshul Jain, Head of Research at Lakshmishree, Dixon Technologies shares saw a brief rebound on positive news but the move has already begun to fade.

Jain explained that the stock retested the 10 and 20-day EMAs and is now trading near the day’s low, indicating supply dominance rather than sustained follow-through buying. Price rejection at the moving-average cluster suggests the rebound was merely a relief move within a broader corrective structure. Momentum indicators remain weak and rallies continue to attract selling pressure. With the structure still tilted lower, the stock remains a sell-on-rallies candidate.

“On the downside, the immediate support to monitor lies near the 9,850 zone. A decisive breach below this level would likely accelerate selling pressure and open the path toward the next major target around 8,446. Until the stock reclaims key moving averages with strong volume support, the broader bias remains bearish,” added Jain.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.