This midcap consumer electronics stock slips over 6% despite 'buy' call by HSBC for over 52% upside

Dixon Technologies share price, Dixon Technologies target: Shares of the midcap consumer electronics company despite a highly positive outlook by global brokerage HSBC opened lower in Monday's trade (April 7, 2025).

After opening with a cut of around 1 per cent, the stock fell over 6 per cent to the day's low price of Rs 12,326.6 per share on the BSE. The steep losses are seen even as the foreign brokerage has reiterated a 'buy' call on the stock with the target pegged at Rs 20,000. The new target suggest a strong potential upside of over 52 per cent.

In the previous session, the stock in a weak market ended lower by nearly 3 per cent at Rs 13,130.55 per share on the BSE.

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The strong upside by the brokerage is anticipated on the back of Donald Trump's announcement of higher tariffs on mainland China, Vietnam and Thailand which is viewed as a blessing in disguise.

HSBC said the company's growth is significantly driven by the domestic market, leveraging strategies such as import substitution, customer addition, and rising market share.

Dixon Tech triggers

• The company has been focusing on reducing dependency on Chinese imports, especially in electronics. Government measures such as PLI (Production Linked Incentive) are also offering incentives rendering local manufacturing more lucrative.

• Their ability to onboard new clients has enabled the company's success. Furthermore, it offers both design and manufacturing solutions - helping the company to widen its client base.

Dixon Technologies share price performance

The stock in the last one year has climbed 66 per cent, while on a year-to-date (YTD) basis it has tumbled over 29 per cent.