Brokerage CLSA has downgraded Dixon Technologies from Outperform to Hold, cutting its 12-month target from ₹15,800 to ₹12,100.
Analysts cited rising global memory prices due to AI demand, which could increase smartphone costs by 10–25% and reduce demand, particularly for budget devices. Dixon, a major electronics contract manufacturer, is exposed to imported memory, making it vulnerable to these price pressures.
The stock has already fallen nearly 38% from its 52-week high, reflecting growing concerns over near-term profitability and medium-term growth prospects.