The brokerage said that while near-term headwinds persist, these appear largely priced in, and the company remains well positioned over the longer term.
UBS expects higher smartphone prices to weigh on organic volume growth in FY27, with a recovery likely in FY28. Margins may also come under pressure in FY27 due to ongoing backward integration, with benefits expected to accrue from FY28 onwards.Key risks flagged by UBS include potential delays in PN3 approvals for the Vivo joint venture, which could account for nearly 20% of FY28 earnings, as well as any worsening of the global memory chip shortage.
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The brokerage said that memory prices have surged over 100% since December 2025 and remained elevated through March 2026, prompting smartphone companies to raise prices across models and new launches.
Major brands such as Samsung, Oppo, Xiaomi, Realme, Nothing, and Vivo have increased prices by up to 40% for select models, with an average hike of around ₹1,500. Further increases are likely as companies attempt to pass on higher input costs.
While elevated prices may impact volumes, particularly in the mass segment, Motilal Oswal believes Dixon is well placed to benefit from structural tailwinds in the electronics manufacturing space.
According to Bloomberg data, 22 out of 32 analysts covering the stock have a ‘Buy’ rating, four recommend ‘Hold’, and six have a ‘Sell’ rating.
Shares of Dixon Technologies were last trading at ₹11,070.50, down 1.74% on the day. The stock is down around 8% so far this year.
