BUZZ-India's Dixon falls after CLSA flags risk from memory prices, weak smartphone demand

Reuters03-16 16:03
BUZZ-India's Dixon falls after CLSA flags risk from memory prices, weak smartphone demand

** Dixon Technologies' DIXO.NS shares down 2% at 10,126 rupees after CLSA flags near-term earnings risk from rising memory prices, availability concerns cloud

** Key customers like Motorola, Transsion, Oppo, Realme have seen 20-68% YoY volume declines, raising concerns about meeting co's FY26 guidance, FY27 growth estimates - CLSA

** Adds, new growth avenues will be crucial for contract electronics manufacturer in medium term

** Says Xiaomi, Transsion, which account for about 40% of Dixon’s volumes, continue to lose market share

** Indian smartphone shipments fell about 25% YoY in January, reflecting weak demand amid rising memory prices - CLSA

** Stock rated "buy" on avg by 30 analysts; median PT 13,250 rupees - data compiled by LSEG

** YTD, stock down 16.3%

(Reporting by Aleef Jahan in Bengaluru)

((aleefjahan.cs@thomsonreuters.com))

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