Shares of Dixon Technologies were under pressure today after global brokerage Investec reduced its target price sharply, even as it reiterated a Buy rating on the stock. Investec cut its price target to ₹15,000 per share from ₹18,900, reflecting a more cautious near- to medium-term outlook amid regulatory and demand-related headwinds.
The brokerage highlighted that Dixon Technologies’ stock has corrected nearly 40% over the past four months, a move driven primarily by two key uncertainties. One major concern relates to delays in receiving government approvals for the proposed Vivo and HKC joint ventures. These partnerships are seen as critical to Dixon’s medium-term expansion in mobile handset manufacturing and display-related segments, both of which are central to the company’s long-term growth strategy.
Another factor weighing on the stock has been the broader slowdown in consumer demand, particularly in the smartphone segment. Muted end-market demand has impacted near-term volume visibility, leading analysts to temper expectations for execution momentum over the next few quarters.
Taking these challenges into account, Investec has lowered its EBITDA estimates for FY26–28 by 5–14%. The revised projections factor in a more conservative view on demand recovery as well as potential delays in scaling up new manufacturing capacities. However, the brokerage noted that the sharp correction in Dixon’s share price has already priced in most of these risks.
From a valuation perspective, Investec pointed out a significant compression in multiples. At current levels, Dixon Technologies is trading at around 40x FY28E earnings, compared with nearly 60x just three to four months ago. This derating, according to the brokerage, has materially improved the stock’s risk-reward profile.
Looking ahead, Investec expects the pending approvals for the Vivo and HKC joint ventures to be cleared over the next couple of months. These approvals are seen as a potential inflection point, as they could restore revenue growth visibility and provide margin comfort for FY27–28. A positive regulatory outcome may also help rebuild investor confidence in Dixon’s long-term manufacturing expansion plans.
Despite near-term earnings downgrades, Investec remains constructive on Dixon Technologies’ structural positioning within India’s electronics manufacturing ecosystem. The brokerage continues to view the company as a key beneficiary of India’s push toward domestic electronics production and believes the recent correction offers a more attractive entry point for long-term investors.
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