Brokerage firm Jefferies has reiterated its “underperform” recommendation on electronic devices manufacturer Dixon Technologies Ltd. after it reported its December quarter results after market hours on Monday, January 20.

Jefferies’ “underperform” rating comes with a price target of ₹12,600, which implies a potential downside of 28% from Monday’s closing levels.

Dixon Technologies reported a 190% growth in its core Mobile business, which now contributes to nearly 90% of the company’s topline. Most of the other parameters of the company were in-line with expectations.

Jefferies wrote in its note that the mobile PLI tenure expires in 2026 and that consumer electronic sales were down 32$% on a year-on-year basis.

At 107 times financial year 2026 price-to-earnings, Dixon’s risk-reward is stretched, according to Jefferies and that derives its “underperform” recommendation.

On the flip side, CLSA has an “outperform” rating on the stock with a price target of ₹18,800.

The brokerage said that it is the mobile segment, which will drive growth in the medium-term for Dixon.

Between financial year 2024 – 2027, CLSA expects Dixon’s revenue, Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and net profit to grow at a Compounded Annual Growth Rate (CAGR) of 59%, 58% and 67% respectively.

Goldman Sachs has a “sell” rating on Dixon with a price target of ₹10,240, which is further below even what Jefferies has ascribed for the stock.

“We think the earnings upgrade cycle may have halted for the time being which, with valuations at current levels coupled with moderation in growth may make the stock underperform,” the brokerage said.

Out of the 31 analysts who have coverage on Dixon, 16 of them have a “buy” rating on the stock, six of them say “hold”, while the other nine have a “sell” rating on the stock.

Shares of Dixon Technologies ended near the highs of the day, gaining 1.7% to close at ₹17,520. The stock had gained over 174% in 2024 and has gained close to 10% over the last five trading sessions.