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Dixon Technologies Sinks to 16-Month Low as CLSA Cuts Target on Near-Term Weakness

Regulatory uncertainty alongside softer demand drives a split outlook from major brokers.

Overview

  • Shares fell for a sixth session on Dec. 29, down about 4% to Rs 11,821, the lowest level since August 2024, leaving the stock roughly 33% lower for 2025.
  • A fresh CLSA note cut the target price to Rs 15,880 from Rs 18,800, trimmed FY26–FY27 EPS estimates by 16–17%, and flagged flat year-on-year revenue in Q3 FY26, while maintaining an overweight stance.
  • Morgan Stanley kept an Underweight rating with a Rs 11,563 target, pointing to extended IT hardware import norms that allow licensed imports and raise growth uncertainty for domestic manufacturers.
  • Investors remain focused on Press Note 3 approval for Dixon’s Vivo joint venture, with CLSA highlighting potential EPS risk if expected smartphone volumes are delayed.
  • Technicals show the stock below key moving averages with an RSI near 28, while market data cited a market cap around Rs 74,000 crore and light turnover in the session.