Dixon Tech shares in focus; CLSA cuts target price by 16%, report suggests
The foreign brokerage expects a flattish YoY topline growth in the December quarter, which is seen paving the way for a FY26 guidance cut, a report suggested.
- Dec 30, 2025,
- Updated Dec 30, 2025 8:27 AM IST
Dixon Technologies (India) Ltd is in focus on Tuesday after CLSA reportedly slashed its target price on the stock to Rs 15,800, down about 16 per cent from Rs 18,800 earlier, while keeping its 'Outperform' call intact. The foreign brokerage expects a flattish YoY topline growth in the December quarter, which is seen paving the way for a FY26 guidance cut, CNBC-TV18 reported the brokerage as saying. Business Today could not independently verify the report.
CLSA remained constructive on medium-term growth, the CNBC-TV18 report suggested. Near-term growth trajectory looks clouded, given tapering smartphone sales in India. CLSA, as per the report, cited market share losses for Dixon Tech's key customers. Interactions with investors indicate concerns around regulatory approvals. CLSA though suggested that despite cuts to FY26-27 earnings, FY28 earnings per share is largely unchanged.
Dixon Technologies shares are down 34 per cent in 2025 so far compared with 47 per cent drop in Kaynes Tech shares.
In a recent interview to Business Today TV, Prashanth Tapse, Sr VP Research Analyst at Mehta Equities said despite the correction in the prices, he sees a huge opportunity as a lot of global brands are coming to India and they are approaching Dixon Tech for outsourcing.
"I think that will trigger very soon, I think quarter on quarter there will be good decent growth in terms of top line as well as the bottom line as well. So, Dixon is the one stock which I am focusing well, I think the management is really strong in terms of future growth and also I think that would be one stock one should focus more on," he said.
Analysts noted that Dixon Tech's Q2 performance was hit to an extent by demand slowdown due to GST rate changes and the postponement of decision-making from customers. Demand started recovering for the consumer durable segment post GST rate cut, they said.
Dixon Technologies (India) Ltd is in focus on Tuesday after CLSA reportedly slashed its target price on the stock to Rs 15,800, down about 16 per cent from Rs 18,800 earlier, while keeping its 'Outperform' call intact. The foreign brokerage expects a flattish YoY topline growth in the December quarter, which is seen paving the way for a FY26 guidance cut, CNBC-TV18 reported the brokerage as saying. Business Today could not independently verify the report.
CLSA remained constructive on medium-term growth, the CNBC-TV18 report suggested. Near-term growth trajectory looks clouded, given tapering smartphone sales in India. CLSA, as per the report, cited market share losses for Dixon Tech's key customers. Interactions with investors indicate concerns around regulatory approvals. CLSA though suggested that despite cuts to FY26-27 earnings, FY28 earnings per share is largely unchanged.
Dixon Technologies shares are down 34 per cent in 2025 so far compared with 47 per cent drop in Kaynes Tech shares.
In a recent interview to Business Today TV, Prashanth Tapse, Sr VP Research Analyst at Mehta Equities said despite the correction in the prices, he sees a huge opportunity as a lot of global brands are coming to India and they are approaching Dixon Tech for outsourcing.
"I think that will trigger very soon, I think quarter on quarter there will be good decent growth in terms of top line as well as the bottom line as well. So, Dixon is the one stock which I am focusing well, I think the management is really strong in terms of future growth and also I think that would be one stock one should focus more on," he said.
Analysts noted that Dixon Tech's Q2 performance was hit to an extent by demand slowdown due to GST rate changes and the postponement of decision-making from customers. Demand started recovering for the consumer durable segment post GST rate cut, they said.