Dixon Tech shares fall over 3% as Morgan Stanley maintains 'Underweight' rating; PG Electroplast, Kaynes see rub-off effect

Dixon, Kaynes Tech shares decline in trade.

• Dixon Technologies shares drop 3% after Morgan Stanley note.
• Morgan Stanley kept 'Underweight' rating, target at Rs 8,157.
• DRAM price hike may affect India's budget smartphone market.

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Shares of Dixon Technologies (India) fell more than 3 percent on Friday after Morgan Stanley maintained an ‘Underweight’ rating on the stock.

The stock declined to an intraday low of Rs 10,645 per share on the NSE. It has fallen for five consecutive sessions and is down more than 9 percent during the period.

Morgan Stanley retained its ‘Underweight’ stance with a price target of Rs 8,157 per share.

The brokerage’s cautious view comes amid a sharp rise in Dynamic Random Access Memory (DRAM) prices. DRAM spot prices as of February 13, 2026 were up 6.8 times year-on-year, reported CNBC-TV18.

Average mobile DRAM prices in the ongoing first quarter of calendar year 2026 for LPDDR4 and LPDDR5 have increased 55 percent and 64 percent quarter-on-quarter, respectively.

According to TrendForce, mobile DRAM prices are expected to rise 88-93 percent in Q1CY26 and a further 20-25 percent in Q2CY26, CNBC-TV18 report added.

Morgan Stanley said nearly 75 percent of India’s smartphone market is priced below USD 300, making it sensitive to component cost inflation. It added that higher DRAM prices could pose an incremental headwind for an industry already witnessing muted demand trends.

Last week, CLSA downgraded the stock to ‘Hold’ from ‘Outperform’ and cut its price target by 23 percent to Rs 12,100 from Rs 15,800 earlier. CLSA said the memory industry is entering a super cycle, driven by AI-led demand for high-bandwidth memory and DDR5, while supply of mainstream memory remains tight.

Meanwhile, shares of Kaynes Technology India Ltd and PG Electroplast Ltd also declined.

Kaynes Technology India fell 1.15 percent to Rs 3,826.20 per share on the NSE, while PG Electroplast was down 1.64 percent at Rs 604.15 per share.

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