Mumbai, Dec 29 Shares of Dixon Technologies continued to slide for the sixth consecutive session on Monday, falling another 4 per cent to Rs 11,821.
This marked the stock’s lowest level since August 2024, as selling pressure remained strong.
At the closing bell, the shares were down by Rs 448 or 3.63 per cent to Rs 11,880 on the National Stock Exchange (NSE).
The stock has been in a sharp downtrend since late September and has lost around 35 per cent of its value from its peak of Rs 18,471.
The decline has largely been driven by concerns that the company’s earnings per share estimates for FY27 could be cut, which has weighed heavily on investor sentiment.
Although the stock showed brief signs of recovery in between, a bearish view from global brokerage firm Morgan Stanley further hurt sentiment.
Dixon Technologies has now emerged as one of the worst performers among Nifty 500 stocks this year, with year-to-date losses of about 33.5 per cent.
Last week, Morgan Stanley maintained its ‘Underweight’ rating on the stock and set a target price of Rs 11,563 per share.
The brokerage flagged uncertainty around growth prospects following the extension of IT hardware import norms, which it believes could limit opportunities for domestic manufacturers.
Morgan Stanley also pointed out that Dixon has maintained its cumulative IT hardware revenue guidance of Rs 48,000 crore up to FY31 over the past two years, while the brokerage’s own estimate stands at Rs 43,000 crore.
It said achieving the company’s guidance may prove difficult in the coming years. The brokerage expects IT hardware to contribute around 7 per cent of Dixon’s revenue by FY30 and warned that favourable import policies pose a downside risk even to this estimate.
In terms of share price performance, Dixon Technologies is on track to record its first annual decline in two years, with a fall of about 34 per cent so far in 2025.
This is a sharp reversal from the strong 173 per cent rally seen in 2024. While the near-term outlook remains weak, the stock’s long-term performance continues to be strong, with gains of around 204 per cent over the past three years and about 340 per cent over the last five years.
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