Dixon Technologies’ Q1FY26 performance has drawn mixed reactions from brokerages, with Nomura and CLSA reaffirming bullish calls and high targets, while Morgan Stanley remained cautious with an Underweight rating and a significantly lower price estimate.
Nomura maintained its Buy rating and set a target price of ₹21,154 per share, implying a 31% upside from the last close. The brokerage noted that Q1 results were ahead of estimates, with strong execution across mobile and components segments. It expects the mobile ramp-up to continue and sees margin tailwinds from the scale-up of multiple joint ventures. Nomura projects EBITDA margins to improve from 3.9% in FY26 to 4.4–4.7% in FY27–28.
CLSA also maintained a High Conviction Outperform rating on Dixon, with a target price of ₹19,365. The brokerage highlighted that Q1 results were above expectations and the company reiterated its FY26 smartphone shipment guidance of 41–43 million units, up from 28 million in FY25. CLSA sees future growth driven by the Vivo joint venture, exports, and diversification across other segments. It also expects margin expansion even after PLI benefits phase out in FY27, supported by component ramp-up.
On the other hand, Morgan Stanley retained its Underweight rating with a sharply lower target of ₹11,563 per share, implying a 28% downside. The brokerage pointed to a broad-based Q1 revenue miss across segments. Although operating expenses and employee costs improved, EBITDA was below estimates and PAT missed by 11%. It noted that margin performance remained mixed across segments and flagged valuation concerns given the recent operational softness.
Disclaimer: The brokerage views expressed above are solely those of the respective firms. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions.
