Dixon Tech Shares Decline 3% Amid Maintained Underweight Rating by Morgan Stanley

Dixon Technologies (India) Shares Fall 3% Amid Morgan Stanley's 'Underweight' Rating

Shares of Dixon Technologies (India) declined by more than 3% on Friday, reaching an intraday low of Rs 10,645 per share on the NSE. This marks the fifth consecutive session of decline and a cumulative drop of more than 9% in the period. The stock's performance is attributed to Morgan Stanley maintaining its 'Underweight' rating on the stock, with a price target of Rs 8,157 per share.

The cautious view by Morgan Stanley comes amidst a sharp rise in Dynamic Random Access Memory (DRAM) prices. As of February 13, 2026, DRAM spot prices have increased 6.8 times year-on-year. Average mobile DRAM prices for LPDDR4 and LPDDR5 have risen 55% and 64% quarter-on-quarter, respectively. According to TrendForce, mobile DRAM prices are expected to surge 88-93% in Q1CY26 and a further 20-25% in Q2CY26.

Morgan Stanley has pointed out that nearly 75% of India's smartphone market is priced below USD 300, making it sensitive to component cost inflation. Higher DRAM prices could pose an incremental headwind for an industry already witnessing muted demand trends.

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Other stocks in the sector, such as Kaynes Technology India Ltd and PG Electroplast Ltd, also declined. Kaynes Technology India fell 1.15% to Rs 3,826.20 per share, while PG Electroplast was down 1.64% at Rs 604.15 per share.