desk
Share
News Topical, Digital Desk : Dixon Technologies Shares Fall Shares of Dixon Technologies Ltd. opened lower on Thursday (February 19). The stock came under pressure after a global brokerage downgraded its rating and lowered its target price.
The company's shares have been falling steadily for the past two sessions. On Wednesday, they closed down 1.36% at ₹11,479. So far in 2026, the shares have fallen 5%, while from the recent 52-week high of ₹18,471, they have fallen a massive 38%. The company's market cap is around ₹70,000 crore.
CLSA downgraded the rating
- Global brokerage CLSA downgraded the stock from 'Outperform' to 'Hold' and cut its target price by 23% to ₹12,100 from ₹15,800.
- According to the new target, there is only a potential upside of 5% from the current price.
Rising memory chip prices a cause for concern
- According to CLSA, the memory industry is undergoing significant change due to the growing demand for AI. Demand for high-bandwidth memory and DDR5 is increasing, putting pressure on supply and driving prices up rapidly.
- In January, DDR5 prices increased by 119% and DDR4 by 63%. NAND prices also increased by 37% to 67%.
- India is heavily dependent on imports for memory chips, so global supply shortages could impact Indian companies.
Impact on the smartphone market
- The brokerage believes that the cost of memory could lead to a 10% to 25% increase in smartphone prices, with the biggest impact being on the affordable smartphone segment.
- This threatens to reduce demand for low-cost phones and could impact the company's medium-term growth.
What is the opinion of analysts?
- According to Bloomberg data, 34 analysts cover this stock.
- 26 have recommended 'Buy'
- 3 said 'Hold'
- 5 rated it 'Sell'
- Morgan Stanley has given the lowest target of ₹8,157 on this stock.
Read More: Tata Investments shares surge 13%, supported by new updates on N Chandrasekaran's third term
--Advertisement--
