Dixon Technologies shares get their lowest target as Morgan Stanley sees another 15% downside

Shares of Dixon Technologies Ltd. opened lower on Tuesday, January 27, as the stock extended its losing streak. The shares have declined for four consecutive sessions and have fallen in 12 of the last 16 trading sessions.

From its recent 52-week high of ₹18,471, the stock is down around 44%, pulling Dixon's market capitalisation closer to the ₹60,000 crore mark.

Brokerage firm Morgan Stanley has an 'Underweight' rating on Dixon Technologies and has cut its price target by 25% to ₹8,724 from ₹11,563 earlier.

The revised target implies a further downside of around 15% from current levels.

The brokerage has flagged downside risks to mobile volume estimates, citing a sharp rise in DRAM (Dynamic Random-Access Memory) prices, delays in regulatory approvals, and the likelihood of increased competition once the mobile PLI scheme expires in March.

Morgan Stanley added that despite the stock's nearly 40% underperformance over the past six months, downside risks remain.

The brokerage expects mobile DRAM prices to rise as much as 65% quarter-on-quarter over the next two quarters amid supply constraints.

It has also lowered its earnings per share estimates by 8% for FY26, 19% for FY27, and 14% for FY28.

Of the 34 analysts tracking Dixon Technologies, 26 have a 'Buy' rating on the stock, while two recommend 'Hold' and six have a 'Sell' call.

Morgan Stanley remains among the most bearish on the stock, with the lowest price target on the Street at ₹8,724, followed by Phillip Capital at ₹9,085. These are the only two targets below the ₹10,000 mark.

Earlier this year, Ambit Capital cut its price target on Dixon Technologies to ₹11,275 from ₹11,868 earlier, while maintaining its 'Sell' rating on the stock.

Shares of Dixon Technologies ended Friday's session 1.73% lower at ₹10,330. The stock has also slipped about 15% so far in 2026.

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