Dixon Technologies secures contract to manufacture laptops and notebooks

Dixon Technologies subsidiary Padget Electronics has secured a contract with Lenovo to manufacture laptops and notebooks under the PLI 2.0 scheme. This collaboration is expected to boost laptop and notebook production in India, generate new jobs, and enhance the competitiveness of Indian-made IT hardware globally. The deal is subject to signing a definitive agreement in the near future and signifies a major development for Dixon, solidifying its position as a leading electronics manufacturer in India.

Financial Performance

Dixon Technologies (India) Limited reported a strong second quarter for FY24, with net sales growth of 27.84% to Rs 4,943.18 crore, compared to Rs 3,866.77 crore in the same quarter last year. The operating profit also experienced a significant increase of 37%. The net profit for the quarter stood at Rs 110.89 crore, which was Rs 77.70 crore in the previous year’s same quarter.

Business Overview

Dixon Technologies (India) Limited is one of the largest Indian home-grown design-focused solutions companies engaged in manufacturing products in the consumer durables, lighting and mobile phones and smartphones markets in India. Recently, it has entered a JV with Imagine Marketing Private Limited for designing and manufacturing wireless audio solutions in India.

In the last few years, the company and its subsidiaries/JVs have received approvals under the production-linked incentive (PLI) scheme for five segments -mobile phones, lightning, telecom and networking products, inverter controller boards for air conditioners and IT hardware.

Stock Price Movement

Today, the stock opened at Rs 6,456.55, with a high and low of Rs 6,764.30 and Rs 6,425.30, respectively. The stock is currently trading at Rs 6,602.80, which increased by 3.65%. The stock has a 52-week high of Rs 6,764 and a 52-week low of Rs 2,554.95. The company has an ROCE of 24.2% and an ROE of 22.5%, with a market capitalization of Rs 40,008 crore.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.