Dixon Technologies' stock rises 5% on the Lenovo deal to a 52-week high

 Dixon Technologies' stock rises 5% on the Lenovo deal to a 52-week high

Dixon Technologies' stock rises 5% on the Lenovo deal to a 52-week high

With a target price of Rs 4,374 per share, foreign research company Morgan Stanley has maintained an under-weight rating on the stock.

Dixon Technologies: Under the Production Linked Incentive 2.0 Scheme (PLI), Lenovo has awarded Padgate Electronics, a fully owned subsidiary of the business, a manufacturing contract for the production of IT hardware items, such as laptops and notebooks. This depends on a formal agreement being signed on time.

Dixon Technologies' stock increased 5% to reach a 52-week high of Rs 6,710.40 in early trading on December 12 after the awarding of a contract by a subsidiary to Lenovo.

Dixon Technologies was up Rs 319.75, or 5.02%, on the BSE at 9:20 a.m., trading at Rs 6,691.90.

Lenovo announced that Padgate Electronics Pvt Ltd, a fully owned subsidiary of the corporation, has been granted the manufacturing contract for IT hardware goods for laptops and notebooks under the Production Linked Incentive 2.0 Scheme. The signature of a formal agreement is pending. is situated underneath.

In Noida, Uttar Pradesh, Padgett Electronics opened a smartphone manufacturing facility on November 30.

The stock is rated as "under-weight" by international research company Morgan Stanley, with a target price of Rs 4,374 per share.

The IT hardware industry has a $12 billion total addressable market (TAM), of which $9 billion is accounted for by imports. Servers, ultra-small form factor devices, tablets, laptops, and all-in-one PCs are examples of IT gear.

Lenovo is expected to have a 20–23% worldwide market share for desktops and laptops, and a 7–10% share for tablets.

In the September quarter, the company's sales climbed by 28% to Rs 4,943.18 crore, while its net profit jumped by 39% to Rs 107.32 crore.

Dixon Technologies (India) is a manufacturer in India that produces goods for the lighting, mobile phone, and consumer durables industries. Consumer electronics like LED TVs, home appliances like washing machines, lighting goods like LED bulbs, tubelights, and downlighters, mobile phones, CCTV and DVR, medical devices, wearable devices, and mobile phones are just a few of the items in its broad product range.

Dixon also offers reverse logistics solutions, such as LED TV panel repair and refurbishing services.