Brokerage Call | Morgan Stanley downgrade Dixon Technologies rating to ‘underweight’, target raised to Rs 11,563
#1 Downgrade as see higher competition in its core EMS business post end of incentives period
#2 Importantly, see an earnings growth slowdown from FY27-30
#3 Component manufacturing is a step in right direction, could be tougher to execute than core EMS business
#4 Core EMS: earnings to slow 46 percent in FY25-27 & 18 percent in FY27-30
#5 Components: contingent on tech tie-ups, approvals & cost controls
#6 Display Fab: deep cyclical business, requires investment and R&D spending
Dixon Technologies was quoting at Rs 14,540.00, down Rs 411.20, or 2.75 percent. It has touched an intraday high of Rs 14,853.30 and an intraday low of Rs 14,465. It was trading with volumes of 23,372 shares.
In the previous trading session, the share closed up 3.26 percent or Rs 472.35 at Rs 14,951.20.
The share touched a 52-week high of Rs 19,149.80 and a 52-week low of Rs 10,613.00 on 17 December, 2024 and 23 July, 2024, respectively. Currently, the stock is trading 24.07 percent below its 52-week high and 37 percent above its 52-week low. Market capitalisation stands at Rs 87,934.54 crore.