Dixon Tech shares surge 7% on Rs 1.9 lakh crore phone manufacturing push. Buy, sell or hold the stock?

Dixon Technologies shares surged 7 percent as the government unveiled the Mobile Phone Manufacturing Scheme (MPMS) worth about Rs 1.9 lakh crore in projected production, with incentives ranging from 2.25 percent to 5 percent on eligible sales plus additional benefits for domestic sourcing and Indian brand design. Separately, the company received long-pending approval for its 51:49 joint venture with Vivo Mobile India to manufacture smartphones, with Emkay raising its target price to Rs 15,200 and Nomura maintaining a Buy at Rs 13,813. Dixon, which accounts for 45-50 percent of India's smartphone manufacturing capacity, is positioned as a key beneficiary alongside the broader custom duty relief on electronics manufacturing inputs.