Dixon Tech Up 3% as CLSA Maintains 'Outperform'; EMS Demand Intact

• Dixon Technologies shares rose 3% on December 12, recovering after a 23% decline in less than a month.
• CLSA maintained an 'Outperform' rating on Dixon Tech with a target price of Rs 18,800, implying a 45% upside.
• Concerns include delays in Vivo JV and component facility approvals, and saturated smartphone market share in India.
• CLSA views Dixon's 44x valuation as "undemanding," believing it already accounts for existing concerns.
• Despite sector volatility from peer issues, analysts suggest underlying EMS demand in India remains intact.

Why It Matters: Dixon Tech's 'Outperform' rating suggests investment potential despite market concerns.