Morgan Stanley said the extension of IT hardware import norms has led to growth uncertainty for domestic manufacturers.
According to the brokerage, the continuation of the Import Management System could allow global brands such as Acer, Lenovo, HP, and Asus to continue importing products under the required licences and disclosures, limiting opportunities for local players.Over the past two years, Dixon Technologies has retained its cumulative IT hardware revenue guidance of ₹48,000 crore up to FY31, compared with Morgan Stanley’s estimate of ₹43,000 crore. The brokerage said meeting this guidance appears challenging in the coming years.
The guidance implies an annual revenue run rate of ₹7,500 to ₹8,000 crore, which Morgan Stanley considers difficult to achieve under the current policy environment.The brokerage expects IT hardware to contribute around 7% of Dixon’s FY30 revenue, adding that favourable import norms could pose a downside risk to this estimate.
Recently, CLSA reiterated its ‘Outperform’ rating on Dixon Technologies with a 12 month price target of ₹18,800.
The stock has fallen 17% over the past month, largely due to concerns around potential cuts to earnings per share estimates for FY27.
Of the 35 analysts tracking Dixon Technologies, 27 have a ‘Buy’ rating, two recommend ‘Hold’, and six have a ‘Sell’ call on the stock.
Dixon Technologies shares are trading 1.19% lower on Monday at ₹13,110. The stock is down nearly 27% so far this year.
