Is Dixon Technologies Facing Its Lowest Share Price Since 2024?
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Synopsis
Dixon Technologies is experiencing a troubling decline in its share price, hitting a 16-month low as investor concerns mount. With a significant drop of 34% in 2025 and a bearish outlook from Morgan Stanley, the company's future growth prospects are in question. Could this be the beginning of a challenging period for Dixon Technologies?
Key Takeaways
- Dixon Technologies shares fell by 34% in 2025.
- Current share price stands at Rs 11,880.
- Market sentiment is affected by possible cuts in earnings estimates.
- Morgan Stanley maintains an 'Underweight' rating on the stock.
- Long-term performance shows significant gains over three and five years.
Mumbai, Dec 29 (NationPress) The shares of Dixon Technologies have continued their downward trajectory for the sixth consecutive session, decreasing by an additional 4 percent to reach Rs 11,821. This decline marks the stock's lowest point since August 2024, driven by persistent selling pressure.
At the market close, the shares were down Rs 448 or 3.63 percent at Rs 11,880 on the National Stock Exchange (NSE).
The stock has experienced a significant decline since late September, losing approximately 35 percent from its peak of Rs 18,471.
Concerns regarding potential cuts to the company's earnings per share estimates for FY27 have heavily impacted investor sentiment.
Despite brief recovery attempts, a negative outlook from global brokerage firm Morgan Stanley further dampened market sentiment.
Dixon Technologies has now positioned itself as one of the poorest performers among Nifty 500 stocks this year, with a year-to-date loss of around 33.5 percent.
Last week, Morgan Stanley reaffirmed its 'Underweight' rating on the stock, assigning a target price of Rs 11,563 per share.
The brokerage highlighted uncertainties regarding growth prospects due to the extension of IT hardware import norms, which could constrain opportunities for domestic producers.
Morgan Stanley also indicated that Dixon has consistently maintained its cumulative IT hardware revenue guidance of Rs 48,000 crore up to FY31 over the last two years, while their own estimate stands at Rs 43,000 crore.
Achieving the company’s forecast may be challenging in the coming years. The brokerage anticipates that IT hardware will contribute roughly 7 percent of Dixon’s revenue by FY30 and cautioned that favorable import policies present a downside risk even to this projection.
In terms of share price performance, Dixon Technologies is on track to record its first annual decline in two years, with a decrease of about 34 percent thus far in 2025.
This reflects a stark contrast to the robust 173 percent rally witnessed in 2024. While the short-term outlook remains weak, the long-term performance of the stock has been commendable, with gains of approximately 204 percent over the past three years and around 340 percent over the last five years.
Point of View
It is crucial to maintain an unbiased perspective. The situation surrounding Dixon Technologies raises important questions about market performance and investor confidence. While the stock has faced significant challenges, it is essential to consider the broader market context and potential recovery strategies.
NationPress
29/12/2025
Frequently Asked Questions
What is causing the decline in Dixon Technologies' share price?
The decline is primarily driven by concerns over potential cuts to earnings per share estimates for FY27 and a bearish outlook from Morgan Stanley, which has maintained an 'Underweight' rating on the stock.
How much has Dixon Technologies' stock fallen this year?
Dixon Technologies has seen a year-to-date decline of approximately 33.5%, marking it as one of the worst performers among Nifty 500 stocks.
What are the forecasts for Dixon's future revenue?
Morgan Stanley has projected that achieving Dixon's cumulative IT hardware revenue guidance of Rs 48,000 crore up to FY31 may prove challenging, with their own estimate at Rs 43,000 crore.
