As Dixon Technologies navigates uncertain geopolitical shifts and rising component costs, brokerages have come out with differing views on the company's outlook going forward.
In its latest note, JPMorgan has maintained an 'overweight' rating on the counter with a target price of Rs 13,700 per share. The firm cites the company's regulatory tailwinds, especially amid media reports of India beginning to ease restrictions on purchasing Chinese equipment.
The new rules could make it easier for state-run power and coal companies to initiate limited imports from China. JPMorgan believes this could actually be a net positive for Dixon Tech, as it would aid its joint ventures with Chinese tech firms Vivo and HKC.
Thanks to the ramp-up of the Longcheer JV and expansion at Q Tech, the brokerage firm projects a robust 43% CAGR growth rate in earnings for Dixon Tech between FY26-FY28.
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While JPMorgan is extremely bullish on Dixon Tech's prospects, Morgan Stanley has maintained an 'underweight' rating on the counter, citing severe headwinds from the global memory chip market.
DRAM spot prices, as reported by NDTV Profit in September last year, have skyrocketed 6.8 times over year-on-year and mobile DRAM prices are expected to surge an additional 88% to 93% in the first quarter of calendar year 2026. This massive cost inflation creates immediate problems for an already muted global smartphone industry.
Morgan Stanley notes that the margin impact will be sharpest in the low-to-mid tier smartphone segment, an area where Dixon's original equipment manufacturing market is highly concentrated.
Therefore, the brokerage warned that the upcoming contract renewals negotiated at higher levels will offer the company less insulation from these surging input costs.
READ MORE: Dixon Tech Finalises JV With Longcheer: Here's What It Means
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