Shares of electronic manufacturing services company Dixon Technologies extended their losing streak to the sixth straight session on Monday, December 29, falling another 4% to 11,821 apiece, the lowest level since August 2024.
The shares have been on a free fall since late September, losing 35% of their value so far, down from 18,471, largely due to concerns about possible cuts to its earnings per share (EPS) estimates for FY27.
Though the stock showed some strength along the way, a bearish outlook from global brokerage firm Morgan Stanley further dented investor sentiment, making it one of the top underperformers among Nifty 500 stocks, with year-to-date losses of 33.5%.
Last week, the brokerage retained its ‘Underweight’ rating on the stock with a target price of 11,563 per share, noting that the extension of IT hardware import norms has led to growth uncertainty for domestic manufacturers.
It said that the continuation of the Import Management System could allow global brands such as Acer, Lenovo, HP, and Asus to continue importing products under the required licenses and disclosures, limiting opportunities for local players.
Over the past two years, Dixon Technologies has retained its cumulative IT hardware revenue guidance of 48,000 crore up to FY31, compared with Morgan Stanley’s estimate of 43,000 crores. The brokerage said meeting this guidance appears challenging in the coming years.
The brokerage expects IT hardware to contribute around 7% of Dixon’s FY30 revenue, adding that favorable import norms could pose a downside risk to this estimate.
Earlier in December, brokerage firm CLSA reiterated its ‘Outperform’ rating on the stock, with a 12-month price target of 18,800.
CLSA noted that Dixon is awaiting approvals for its Vivo joint venture and component facilities under the government’s scheme, with medium-term growth unclear due to a saturated smartphone market. Despite this, the stock’s 44x valuation is considered “undemanding” and factors in these concerns.
Dixon Technologies share price history
With a 33% drop in 2025 YTD, Dixon Technologies’ share price is on track to post its first annual decline in two years. This fall is in stark contrast to the 173% surge in 2024. Although the stock’s short-term trend looks weak, its long-term performance remains intact, trading 204% higher over the last three years and 340% higher over the past five years.
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