Dixon Technologies stock rating cut by CLSA on growth concerns

Published 20/10/2025, 08:12
Dixon Technologies stock rating cut by CLSA on growth concerns

Investing.com - CLSA downgraded Dixon Technologies India Ltd (NS:DIXON) from High-Conviction Outperform to Outperform while lowering its price target to INR18,800.00 from INR19,365.00.

The research firm acknowledged that Dixon’s first-quarter revenue growth of 16% quarter-over-quarter had largely addressed investor concerns about market share losses in the electronics manufacturing sector.

CLSA projects that Dixon’s smartphone volume will grow more than 40% in fiscal year 2027, after which growth will depend on export performance. The firm warned that the discontinuation of India’s Production Linked Incentive (PLI) scheme could pressure margins in early fiscal 2027, before backward integration efforts take effect.

The downgrade reflects reduced visibility on Dixon’s growth path as its domestic smartphone market share approaches saturation. CLSA identified new categories including IT hardware, telecom equipment, and exports as key areas to monitor for future growth potential.

The firm also highlighted the importance of tracking Dixon’s progress on margin expansion projects, which will be crucial for the company’s profitability as it navigates the changing regulatory and competitive landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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