Shares of Dixon Technologies gained 1.97% to ₹13,244 on Friday, Dec 12, after global brokerage CLSA reiterated its ‘Outperform’ rating on the stock and kept a target price of ₹18,800.
CLSA noted that the recent correction in Dixon’s share price has been driven by concerns around FY27 earnings, along with delays in key business triggers.
According to CLSA:
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The Vivo joint venture remains pending, and once operational, is expected to add 20 million smartphone units to Dixon’s production volumes.
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The company is yet to receive approvals for new components facilities under the ECMS scheme, which limits near-term expansion visibility.
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Medium-term growth outlook remains uncertain, especially as smartphone market share gains begin to saturate.
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Even factoring in delays in Vivo’s rollout, the stock continues to trade at a 44x multiple, indicating premium valuations.
Despite these concerns, CLSA maintains a positive long-term view, citing Dixon’s strong industry positioning and capacity to scale once approvals and JV clearances come through.
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