Retail investors, take note: Dixon Technologies' shares dropped 4% on Monday, reaching a six‑month low of ₹11,821 and marking a sixth straight day of losses.
Why the stock keeps falling
Since late September, the stock has slipped about 35%, falling from around ₹18,471. The main worry is that earnings per share (EPS) for the fiscal year 2027 might be cut.
Analyst warnings add pressure
Global broker Morgan Stanley kept a negative outlook, labeling the stock “Underweight” with a target price of ₹11,563. The firm says that recent extensions of IT‑hardware import rules let big foreign brands (Acer, Lenovo, HP, Asus) keep bringing products into India, limiting growth chances for local makers like Dixon.
Growth targets look shaky
Dixon has promised IT‑hardware revenue of about ₹48,000 crore up to FY31, but Morgan Stanley estimates only ₹43,000 crore, saying the target may be hard to hit. The broker expects IT hardware to make up roughly 7% of Dixon’s FY30 revenue, and the relaxed import norms could push that number lower.
Other analyst views
CLSA, another research house, kept its “Outperform” rating and set a 12‑month price target of ₹18,800. They note that Dixon is waiting for approvals on its Vivo joint venture and new component facilities, but growth may be limited because the smartphone market is crowded. Even so, they consider the stock’s current valuation (about 44 times earnings) reasonable given the risks.
Long‑term performance remains strong
- 2025 YTD: shares down about 33% – first annual decline in two years.
- 2024: shares surged 173%.
- Last 3 years: up 204%.
- Last 5 years: up 340%.
So while the short‑term trend is weak, the longer‑term track record is still impressive.
Bottom line for investors
If you own Dixon Technologies stock, expect volatility as analysts question earnings and import policies. New approvals for joint ventures could help, but the broader smartphone market remains tough.
Remember, this is perspective, not a prediction. Do your own research or talk to a certified financial advisor before making any investment decisions.