Goldman Sachs reiterates a Sell rating on Dixon Technologies following a Q4 miss, citing persistent headwinds in the mobile business and expected growth moderation through FY27.
Key Takeaways
- 1.Dixon's Q4 results missed expectations due to weakness in the mobile and EMS segments, impacted by high DRAM prices and supply constraints.
- 2.Outlook for FY27 remains muted because of elevated memory costs, delays in VIVO volumes, and the absence of PLI (Production Linked Incentive) incentives.
- 3.Growth is expected to moderate as market share gains in non-Apple phones reach a ceiling and backward integration benefits only arrive with a lag.
Table of Contents
- Key highlights from earnings
- Other segments
- Balance sheet and cash flows
- Capex
- Changes in estimates/TP
- Investment Thesis - Dixon Technologies (India) Ltd.
- Price Target Risks and Methodology - Dixon Technologies (India) Ltd.
- Disclosure Appendix
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Authors
Pulkit PatniNirmal Gopi
Securities
DIXON
Themes
EMS Growth ModerationImpact of Input Cost Inflation (DRAM)PLI Incentive Sunset
Regions
Asia PacificIndia