 "Dixon, Kaynes crack up to 8% in 2 days, hit 52-week lows; here's why")
Dixon Technologies (India), Kaynes Technology India share price today
Shares of electronic manufacturing services (EMS) companies, Kaynes Technology India (Kaynes) and Dixon Technologies (India) (Dixon) extended their losses, falling up to 3 per cent on the BSE in Wednesday’s intra-day trade on concerns of weak earnings. In the past two trading days, these companies have declined up to 8 per cent. In comparison, the BSE Sensex was down 0.18 per cent at 84,909 at 09:35 AM.
Shares of Kaynes Technology India slipped 3 per cent to ₹3,682.15 in intra-day deals. In the past two trading days, the stock has plunged 8 per cent. With the past two days’ decline, the stock price of Kaynes has corrected 52 per cent from its 52-week high of ₹7,705 touched on October 7, 2025.
Shares of Dixon Technologies were down 2 per cent to ₹11,480 in intra-day trade, falling 5 per cent in the past two trading days. It has plunged 38 per cent from its 52-week high of ₹18,549.35 hit on January 7, 2025. CATCH STOCK MARKET UPDATES TODAY LIVE
Why are EMS stocks under pressure, hitting 52-week lows?
Analyst sat JM Financial Institutional Equities believe three key reasons have spooked the Street on Dixon, including the risk to volume and margin starting FY27E in the absence of requisite government approvals (PN3 approvals for JVs with Vivo and HKC expected in November 2025 not yet received; now expected in January 2026 as per management). Analysts expect the massive surge in memory prices, driving up costs of budget smartphones, resulting in certain brands losing market share and ultimately posing a risk to smartphone volume; and the anticipation of a weak December 2025 quarter (Q3).
While Dixon has a strategy in place to mitigate risk to margin and volumes, execution has been delayed, which one could argue, is due to factors beyond Dixon’s control, the brokerage firm said. It expects Dixon to post a flattish Q3, driven by muted mobile revenue, given a slowdown in sourcing from brands. While gross margin could improve (superior product mix) operating deleverage could limit the benefit to EBITDA margin. ALSO READ | Nomura hikes Max Financial's target price as it expects co to outpace peers Analysts further cut its smartphone volume estimate to 36 million, vs. 39 million earlier for FY26E to factor in a delay in commencement of Vivo (0.5 million vs. 2 million earlier), and a slowdown in volume from budget brands driving down volume estimates to 60 million from 63 million for FY27E. However, the brokerage firm maintains ‘ADD’ rating on Dixon with a target price of ₹13,800 per share.
Meanwhile, CareEdge Ratings anticipates a steady improvement in the Kaynes’ operational scale backed by its order book, which is expected to generate robust cash accruals. Nevertheless, operating cash flows have remained negative due to the rapid expansion of operations and the inherently high working capital intensity characteristic of the electronics system design and manufacturing (ESDM) industry. The successful second QIP in June 2025 has, however, alleviated pressure by reducing the otherwise increasing reliance on working capital borrowings. ALSO READ | Kalyan Jewellers rises 3% after posting Q3 biz update; check details here
The company has a large capex plan of ₹4,700 crore in the next five years, which is expected to be funded primarily through a mix of government subsidies and QIP proceeds, with minimal reliance on debt. Timely receipt of government subsidies is therefore critical to maintaining low debt dependence for funding this capex, the rating agency said.
CareEdge Ratings in rating rationale said that it notes that the company has collaborations with international partners integral to the value chain and has shipped products from its outsourced semiconductor assembly and testing (OSAT) facility for testing. The OSAT project is expected to commence full-fledged operations in Q4FY26. Consequently, timely commencement of operations, healthy cash flows, and receipt of government subsidies—required for further capex funding—will be key monitorable, it added. ================= Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.