Dixon Technologies has been recommended as a Buy by Anand Rathi, with a target price of Rs 17,750. The company has shown strong growth in the cell-phone segment, which has continued into the second quarter.

Dixon is working on backward integration in mobile manufacturing, including screen production, and is also exploring partnerships for camera modules and mechanical components. These efforts are expected to bring benefits starting from FY27.

Dixon is also expanding its laptop production capabilities and has secured four clients that collectively hold around 70-75% of the market share. To support this growth, a new manufacturing plant is being established, providing revenue assurance in the medium term. The positive growth outlook and anticipated margin expansion are projected to increase the company's Return on Capital Employed (RoCE) to 40.4% by FY27, up from the current 28.2%.