Mumbai, July 6 -- The price target implies a potential upside of about 22.6% from the current market price.

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 f...