Mumbai: Shares of Dixon Technologies continued to face heavy selling pressure on Tuesday, January 13, falling more than 5 percent and extending losses for the third straight session. With this decline, the stock slipped to its lowest level since June 2024. From its recent 52-week high of Rs 18,471, Dixon’s share price has now dropped by over 40 percent, worrying short-term investors.
Market value erodes
The sharp fall has also hit the company’s market capitalisation, which has now slipped below the Rs 70,000 crore mark. So far in 2026, the stock has fallen in six out of nine trading sessions, showing sustained weakness. On Tuesday, Dixon emerged as the top loser on the Nifty 500 index, reflecting broad-based selling interest.
HSBC turns cautious on near term
Brokerage firm HSBC maintained its “buy” rating on Dixon but sharply cut its price target to Rs 15,500 from Rs 19,600 earlier. In its note, HSBC highlighted several challenges weighing on near-term performance. These include rising memory prices, delays in joint venture approvals, and concerns around the expiry of the mobile phone production-linked incentive (PLI) scheme.
HSBC also expects Dixon’s third-quarter performance to remain subdued due to the absence of any major growth trigger. As a result, the brokerage reduced its earnings estimates for FY26 to FY28 by 3 percent to 5 percent and lowered its target price-to-earnings multiple to 50 times.
Mixed broker views remain
Despite recent pressure, not all brokerages are pessimistic. Investec has maintained its bullish view on Dixon, keeping a higher price target of Rs 18,900 in its latest note.
Overall, 35 analysts currently track Dixon Technologies. Of these, 27 recommend “buy,” two suggest “hold,” while six have a “sell” rating. This split shows confidence in Dixon’s long-term prospects, even as near-term concerns continue to weigh on the stock.
