CLSA cuts Dixon Tech to Underperform on memory price squeeze, sees 13% downside
CLSA downgraded Dixon Technologies with Rs 10,400 target, flagging 15-20% drop in India smartphone sales in May as global memory supercycle pressures handset volumes. Chinese brand exposure and stretched 46x FY28 PE weigh, despite Vivo JV and PLI 2.0 tailwinds.
What happened
CLSA downgraded Dixon Technologies to Underperform with Rs 10,400 target, citing India smartphone sales falling 15-20% as global memory supercycle squeezes
Key facts
- Rs 10,400 price target
- 13% downside
- 15% stock rise 3M
- 15-20% smartphone sales fall May
- 41M units FY27
- 5% EPS CAGR FY26-29
- 46x FY28 PE
- 40x target PE
Why this matters
Dixon's stretched valuation amid smartphone demand softness opens a window to revisit JV terms or pursue backward integration into memory/components to insulate against supercycle volatility.