Dixon Technologies shares stuck in bear grip; buy, sell or hold?

Shares of Dixon Technologies are stuck in bear grip for a year, with investors expecting a recovery in the consumer electronics stock in the near future. The multibagger stock has fallen 22% in a year and lost 25.28% in 2025. In three months, Dixon Technologies shares have fallen 25%, confirming weakness in the short term. 

The multibagger stock was trading 0.62% lower at Rs 13,480 in the current session. Market cap of the firm fell to Rs 81,293 crore. Turnover stood at Rs 14 crore as 0.10 lakh shares of the firm changed hands on BSE. 

Shares of Dixon Technologies are in a weak zone. The stock trades lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages, signalling the trend has been on a negative side for the market leader in its segment. 

The relative strength index (RSI) of Dixon Technologies stands at 24.6, signaling it's trading in the oversold territory.

However, Dixon Technologies shares rose 228% in three years and gained 467% in five years.  

Market expert Raghvendra Singh said the stock is forming a lower-top, lower-bottom structure. He believes the stock may only show a meaningful turnaround from Rs 12,700 and suggested investors to wait.

Brokerage Nuvama has a hold rating on the stock with a price target of Rs 16,600. 

The brokerage has cut its EPS estimates by 8%–13%. It expects the firm to report a 33%/37%/30% CAGR in revenue/EBITDA/adjusted PAT in FY25–28E. 

The brokerage has trimmed its December-2026 estimated price target to Rs 16,600 (from Rs 16,800), basis 65x Dec-27 earnings per share (EPS).

Nuvama said medium to long-term growth plans of the firm stay intact and the firm has guided toward Rs 1 trillion revenue target in next 3–4 years with 4–4.5% EBITDA margin. 

Nuvama says Dixon’s business model is highly scalable yet profitable, thanks to its frugal cost structure, capital-light intensity and, above all, high manufacturing fungibility. Negative working capital and 10 times asset turns allow Dixon to make 30% plus Return on Capital. "However, we believe that these valuations of over 72 times, a lot of growth runway is captured in the current stock price," said the brokerage. 

Meanwhile, global brokerage UBS has a 'buy' call with a target price of Rs 23,000 per share. 

According to the brokerage, the company is entering a new growth phase through backward integration into non-semiconductor smartphone components. This could push the EBITDA margin by 110 Bps by FY28 against consensus of 40 Bps. 

Dixon Technologies is expected to benefit from entry into key areas such as displays, camera modules, enclosures, and batteries, which should support both growth and margin expansion.

HDFC Securities has a price target of Rs 18,830 on the Dixon stock. 

"We have introduced FY28E financials and roll forward our valuation to Sep-27E from Mar-27E. We maintain ADD with a revised target price of Rs 18,830, by valuing the  company at 70x Sep-27E EPS," said the brokerage. 

Dixon Technologies (India) is the largest home-grown design-focused and solutions company engaged in contract manufacturing products in the consumer durables, lighting and mobile phones markets in India.