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Why Dixon Share Price Is Falling Today: 6 Key Head-liners Facebook Twitter Instagram Linkedin Dixon Technologies, long touted as India’s premier electronics-manufacturing service (EMS) play, has seen its stock come under fresh selling pressure—down over 3% intraday on June 25. Here’s a deep dive into the forces driving today’s decline.1. The Elephant in the Room: Major Clients Diversify Supply ChainsThe most impactful news contributing to Dixon's recent dip stems from a significant development regarding its largest client, Motorola. Global brokerage firm PhillipCapital recently downgraded its estimates for Dixon, citing rising competition in the mobile phone assembly sector. Motorola, Dixon’s largest “Make in India” customer, is no longer exclusive. After relying 100% on Dixon in CY24, Motorola diverted roughly 25% of its April–May production to Karbonn—and that share could swell to 35% by June. Even Longcheer, Dixon’s #2 client, has started routing about 2% of its volumes to Karbonn, adding fresh top-line and margin worries.2. Sharp Brokerage Downgrades and Earnings CutsPhilip Capital reiterated a “Sell” call on Dixon and slashed its price target from ₹11,077 to ₹9,085—the second-lowest Street view—citing intensifying competition in mobile assembly. It also trimmed its FY27 estimates by 4% for revenue, 6% for EBITDA, and 9% for PAT. Negative broker notes often trigger algorithmic selling and prompt cautious repositioning by fund managers.3. Promoter Stake Sale Spooks the StreetFounder-promoter Sunil Vachani sold 16.7 lakh shares (2.77% of equity) through block deals worth more than ₹2,200 crore. While institutional buyers, including Motilal Oswal Mutual Fund, purchased most of the stock, large insider exits tend to spook retail and momentum investors, raising concerns about future selling pressure.4. Disappointing Sequential Q3 PerformanceIn Q3 FY25, Dixon’s net profit plunged 47.5% quarter-on-quarter to ₹216.2 crore (from ₹411.7 crore), while revenue dipped 9.4% to ₹10,453.7 crore. The sharp QoQ slump exposed order-flow volatility and margin squeeze, prompting Jefferies to maintain an “Underperform” stance and Nuvama to cut its FY25–27 estimates.5. Bearish Technical Indicators Gain MomentumOn the charts, Dixon has broken below its 5–, 10–, 20–, 50–, 100–, and 200–day moving averages. A “Double Top” pattern signals a potential trend reversal, the RSI languishes near 40 (neither overbought nor deeply oversold), and the rising ADX suggests the downtrend is strengthening. Immediate support sits around ₹13,800; failure to hold could drag the stock toward ₹13,330.6. Looming Margin Headwinds Post-PLIInvestors are bracing for the PLI (Production Linked Incentive) benefits to phase out by FY26. With input costs trending higher and deeper backward integration still a work in progress, margin expansion may stall, adding a structural layer of uncertainty to Dixon’s earnings trajectory.What's Next for Dixon?While the near-term landscape looks difficult, it is not all bad news for Dixon.Good Fundamentals (Historically): The company has consistently recorded strong earnings, and in its most recent quarters, it has experienced significant year-over-year growth in its profit after tax (PAT) and revenue (e.g., 379% YoY growth in PAT in Q4FY25). Diversification Efforts: Dixon is actively pursuing diversification strategies. Its upcoming joint venture with Vivo, for instance, could add substantial revenue (estimated ₹8,000 crore by FY27) and offer healthy double-digit margins, potentially offsetting some of the challenges in its existing segments. They are also investing in display module manufacturing and have secured new contracts with companies like Compal (for Google Pixel smartphones) and MoUs with Asus and HP India.PLI Scheme Beneficiary: Dixon has been a key beneficiary of India's Production Linked Incentive (PLI) scheme, which aims to boost local manufacturing. While the mobile PLI scheme is set to end by FY26, the company is looking into a potential component PLI scheme and other government incentives.Recent Brokerage Actions & Target Prices for Dixon TechnologiesBrokerage ratings and their associated target prices are powerful drivers of short-term stock movements, reflecting expert opinions on prospects. The table below highlights the diverse views of financial analysts, which contribute to the stock's volatility. Broker Recommendations Report Broker Recommendations Date Broker Action Prices (₹) 27-Jun-2025 Nomura Buy 21,409 27-Jun-2025 Equirus Add N/A 25-Jun-2025 Phillip Capital Sell 9,085 22-May-2025 Motilal Oswal Buy 20,500 21-Jan-2025 Edelweiss Securities Hold 18,790 15-Jan-2025 Emkay Global Buy 20,000 17-Sep-2024 Motilal Oswal Buy 15,500 01-Aug-2024 ICICI Securities Hold 11,500 In the table below, we can see the conflicting forces at work that have been driving Dixon's price volatility. Specifically, Nomura's high target versus Phillip Capital's relatively low target shows that there is still uncertainty in the future direction for Dixon and uncertainty in regards to how experts interpret the competitive environment and futures growth potential. The divides in expert opinions allow for more price movement in the stock. Dixon Technologies Share Price Performance (Recent Periods)To fully understand the context of the user's initial query about the stock "falling today," it is essential to examine Dixon's share price performance over recent periods. This historical context reveals that while the stock rebounded on June 27th, it had indeed been in a downtrend leading up to this date. Market Performance Report Market Performance Comparison Period BSE (%) NSE (%) SENSEX (%) NIFTY (%) 1 Week2.28%2.22%3.18%3.07% 1 Month-5.08%-5.10%2.16%2.22% 3 Month8.02%7.95%8.62%8.81% 6 Month-20.52%-20.64%6.98%7.60% 1 Year25.57%25.59%6.71%7.07% 3 Year305.77%305.83%59.22%62.78% The negative returns for the 1-month and 6-month time periods confirm the stock was in a recent downtrend, corroborating user’s initial perception of "plummeting." Looking at Dixon's performance against the overall market indices (SENSEX and NIFTY) is useful. It will help determine whether the movements are largely company-specific or part of broader market movements. For example, the large underperformance at 1 month and 6 months is significant from a performance standpoint while the overall market returns were positive. This indicates the downturn was likely at the company level. However, prior to this, Dixon's remarkable 3-year return of over 300% provides a clear picture with a multi-bagger opportunity, despite short-term volatility suggesting a steady hand, demonstrates long-term viability. In conclusionDixon's share price collapse (and volatility) today is nothing new or unexpected; it is only the recent culmination of many factors, mainly the increased competition within the mobile phone assembly market (and more particularly, the Diversification of Motorola, Dixon's largest customer) and historic valuation issues compounded with the recent sale of promoter stake. This creates an environment of caution among institutional and retail investors alike. There are still many things to like about Dixon, with its diversification strategy and long-term prospects, but how Dixon addresses competitive pressure and implements its new growth strategies will be closely observed by investors. Related post BEL receives Rs.2,210 Crores order for Electronic Warfare (EW) Suite

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