This midcap consumer electronics stock hits all-time high price; heres fresh trigger
As policy environment is expected to be favourable for the company, global brokerage HSBC has continued with its buy rating on the counter.
Shares of consumer electronics firm Dixon Tech marked their fresh all-time high price in Monday’s session (July 1, 2024) at Rs 12,334, gaining over 3 per cent..
Today’s gains may be spurred after brokerage firm HSBC maintained its buy on the stock and raised the target by over 45 per cent. The brokerage is of the viewpoint that the policy environment for the company is likely to remain favourable.
Thanks to policy measures, a lot has happened in the electronics sector in India over the past 5 years, it added. Further, given the high electronics trade deficit, the policies are likely to continue to support more backward integration and exports.
The brokerage has continued with its previous 'buy' call given the company's scale, strong balance sheet and client relationship. It estimates EPS CAGR of 51 per cent over FY24-27E.
The company also clarified with regard to the media report and said that on average it incurs capex of Rs 500 - 600 crore on an annual basis on its capacity building and keeps assessing different business opportunities including inorganic opportunities.
The company's shares turned into a 5-digit stock as its share price breached the Rs 10,000 mark for the first time on June 7. This was after the company inked a term sheet to establish a joint venture (JV) with HKC Corporation. The joint venture was formed to undertake the manufacture of liquid crystal modules (LCM) and thin-film transistor liquid crystal display modules (TFT-LCD modules), along with assembling several end products including smartphones, TVs, monitors, and auto displays.
Dixon Tech share price performance
Shares of Dixon Tech in the last one year have zoomed 182 per cent, while Nifty Consumer Durables constituting the stock has galloped 43 per cent during the same time.
About Dixon Tech
Dixon Technologies is a design-focused mid-cap products and solutions company. The company is engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.