Dixon Technologies : Why Jefferies expects 31% global smartphone slump to hit this EMS sector stock

The share price of Dixon Technologies is in focus after the HKC JV. Though it saw some gains on the back of the news, theshare price has fallen 40% in the past six months. International brokerage house Jefferies continues to maintain a cautious stance on the stock. This is because of Dixon’s valuation. They pointed out that despite the sharp correction, it still trades at 47x FY27 PE. This is above most peers.

In a recent note, Jefferies retained a ‘Hold’ rating on the electronics manufacturing services (EMS) company with a price target of Rs 11,350, implying around 13% upside from the current levels.