Morgan Stanley has maintained its Underweight rating on Dixon Technologies and set a target price of ₹11,563 per share, implying a 28% downside from the current market price of ₹16,110.00.
The brokerage flagged a broad-based revenue miss across business segments in Q1FY26. EBITDA also came in below expectations, although there was some improvement in operating expenses and employee costs.
Morgan Stanley noted that profit after tax (PAT) missed its estimates by 11%. Margins remained mixed across segments, underscoring the uneven performance during the quarter.
While Dixon continues to benefit from structural industry tailwinds, the brokerage remains cautious due to its high valuations and recent operational softness.
Disclaimer: The brokerage views expressed above are those of Morgan Stanley. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions.
