CLSA Recommends Dixon Tech: 45% Upside Despite Vivo JV Uncertainty

• CLSA reiterates 'outperform' rating on Dixon Technologies, setting a 12-month price target of ₹18,800, indicating a potential 45% upside.
• Dixon's stock recently fell 17% due to market concerns over potential FY27 EPS estimate cuts and pending approval for its JV with Vivo.
• The company awaits Press Note 3 approval for its Vivo JV and clearance for its component manufacturing plant, facing limited mid-term growth visibility in a saturated smartphone market.
• An SFIO investigation into Vivo adds uncertainty to the JV; however, CLSA suggests Dixon could gain from displaced production if the JV isn't approved.
• Despite challenges, CLSA finds the stock's valuation (44x Sep 2027 estimated earnings) not overly expensive, with 27 out of 35 analysts recommending 'Buy'.

Why It Matters: Dixon's growth potential vs. regulatory & JV risks.