Dixon Technologies Shares Rise After CLSA Maintains 'Outperform' Rating

Dixon Technologies Sees Stock Price Increase

The shares of Dixon Technologies (India) rose by around 3 percent on December 12. This happened after the international brokerage CLSA maintained its 'Outperform' rating on the stock. The target price set by CLSA implies a strong upside potential from current levels.

Current Stock Performance

Dixon Tech shares closed at Rs 13,365 apiece on Friday. This extension of gains marks the second consecutive session of increases. Previously, the stock had declined by more than 23 percent in less than a month. This decline was partly due to the impact from the selloff of its peer, Kaynes Tech.

CLSA's Rating and Target Price

CLSA maintained its 'Outperform' rating on the stock with a target price of Rs 18,800 per share. This implies an upside potential of nearly 45 percent from the stock's previous closing price of Rs 12,988 per share.

Reasons for Stock Decline

The international brokerage said that the stock's 17 percent fall over the past month was largely driven by concerns about possible cuts to its earnings per share (EPS) estimates for FY27. Additionally, Dixon is still awaiting approvals for its joint venture with Vivo. The company has not yet received approvals for components facilities under the Indian government's Electronic Components Manufacturing Scheme.

Market Outlook

Despite these concerns, CLSA said that the stock's valuation of 44x as of September 27 earnings is 'undemanding', and prices in all the concerns. Experts like Ravi Singh, Chief Research Officer at Master Capital Services, and Kalp Jain, Research Analyst at INVasset PMS, believe that the underlying sector drivers remain unchanged. They cited domestic electronics production expansion, supported by rising consumption, ongoing capacity additions, and policy incentives.

Key Points to Note

• Dixon Tech shares have fallen more than 4 percent in the past five days and around 13 percent in the past one month.
• The stock is down nearly 26 percent in 2025 so far.
• The recent sharp decline in EMS stocks came after Kotak Institutional Equities raised concerns over inconsistencies in Kaynes Tech's related-party disclosures.

Experts believe that well-capitalized players with diversified clients, like Dixon and Amber, should stabilize first as their demand pipelines remain intact. The outlook from here will depend on how quarterly results shape up, particularly in terms of order visibility, utilization rates, and margin stability.