Tag: DixonTechnologies

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.

Shares of Dixon Technologies surged nearly 5% after the electronics manufacturer posted a strong set of results for the December quarter.

The company reported a sharp 67% year-on-year rise in net profit to ₹287 crore, helped by a one-time gain from the sale of its lighting business stake. Revenue remained robust, driven mainly by its mobile phone and electronics manufacturing segments, though smartphone volumes were impacted by inventory adjustments and higher component costs. Brokerage views remain mixed.

While some analysts see long-term growth potential, others caution that near-term volume pressure and margin risks could weigh on the stock.