Dixon Technologies shares hit new 52-week high, m-cap tops Rs 10,000 cr; skyrocket 267% in less than 1 year

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September 7, 2020 12:53 PM

According to a research report by ICICI Securities, Dixon is well placed to cater to this business proposition and is well equipped to serve the export markets in select categories (feature/smart-phones, lighting, washing machines).

dixon technologies, dixon technologies sharesThe stock has skyrocketed 267 per cent from its 52-week low of Rs 2,433.20, hit in September last year

Dixon Technologies share price jumped over 4 per cent to scale a fresh 52-week high of Rs 8,935 apiece on BSE, taking the market capitalisation of the company above Rs 10,000 crore. The stock has been on a gaining spree since past five consecutive trading sessions. The stock has surpassed its previous high of Rs 8,821.85 apiece touched on August 28 this year. The stock has skyrocketed 267 per cent from its 52-week low of Rs 2,433.20, hit in September last year. “Stock is consistently holding above major moving averages but at the same time on higher levels selling pressure keeping it below 9000. This is the first indication of the distribution on a higher level. If it isn’t able to cut above 8900 then profit booking may come. On the other hand, above 8900 it can move till 9600,” Vishal Wagh, Head of Research, Bonanza Portfolio, told Financial Express Online. 

Dixon Technologies shares were trading 1.8 per cent higher at Rs 8,730 apiece, as compared to 0.15 per cent fall in the benchmark S&P BSE Sensex. According to a research report by ICICI Securities, Dixon is well placed to cater to this business proposition and is well equipped to serve the export markets in select categories (feature/smart-phones, lighting, washing machines). It further noted that set-top box is emerging to be a big category for Dixon with Rs 8 bn-10 bn revenue potential in FY22 with volumes of 800k-1,000k per month driven by RJio, Dish TV and Siti Cable. There is enough demand for set-top boxes in semi-urban and rural markets. 

“We are constantly developing new products to meet end-user requirements. Being the largest manufacturer of TV sets in India, we expect to increase the production further by 40% in the coming fiscal, capturing almost 30% of the TV sets manufacturing market. Further, as brands look to reduce their refurbishment cost, more and more companies will outsource such operations to established players like us for addressing end-user queries,” said Abhijit Kotnis President- COO – Consumer Electronics & Reverse logistics, in an annual report of Dixon Technologies.

Analysts at Anand Rathi noted that while the first quarter was hurt by the lockdown, Dixon continues to lead the government’s self-dependence measures to manufacture consumer durables. It is well placed to benefit from the PLI scheme, for which submissions have been made. The recent notification putting television imports in the restricted category also augurs well for Dixon and supports customer additions. “Expansion of Reliance Jio can further increase Dixon’s addressable set-top boxes and be another `10bn opportunity waiting to unfold in coming years,” it added.

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