Dixon Tech shares may fall 47%, Phillip Capital projects with 'sell' rating

About this update from Dixon Technologies (india) Ltd.

Shares of Dixon Technologies (India) Ltd. declined on Tuesday, October 14, after brokerage firm Philip Capital assigned a 'Sell' rating to the stock. The brokerage has a price target of ₹9,085 per share, implying a potential downside of 47% from Monday's closing price. The brokerage wrote in its note that Dixon faces huge client concentration risk, as Motorola's domestic volumes, its largest client, have fallen sharply. In FY25, nearly 80% of Dixon's mobile phone revenue came from Motorola, which dropped to 60% by Q2FY26, largely due to lower domestic shipments and increasing competition from Apple and other Android brands. According to the brokerage, Motorola outsourced 18% fewer domestic volumes to Dixon year-on-year in Q2FY26, as the company increased outsourcing to rival manufacturer Karbon. Philip Capital also said that Dixon is likely to miss its Q1FY26 guidance of 15% quarter-on-quarter value growth in mobile phones, owing to both volume declines from Motorola and loss of wallet share to Longcheer and Xiaomi. The brokerage expects a double-digit cut in consensus FY26 profit-after-tax (PAT) estimates, currently pegged at around ₹1,200 crore, in the coming quarters. Of the 36 analysts tracking Dixon Technologies, 27 have a 'Buy' rating, six recommend 'Hold', and three advise 'Sell'. Dixon Technologies shares were trading 4.05% lower at ₹16,499. The stock has fallen around 8% year-to-date.

View stock analysis, news, and events for Dixon Technologies (india) Ltd.