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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