This mid-cap consumer durables stock hits an all-time high: Here's why

Shares of Dixon Technologies in Tuesday's trade hit an all-time high of Rs 6,765 each, gaining over 6 per cent from the previous close. The gains in the stock were triggered after the company's subsidiary, Padget Electronics, bagged a manufacturing contract from Lenovo.
 
The contract has been awarded under the Production-Linked Incentive, or PLI 2.0 scheme, for manufacturing IT hardware products.
 
"Padget Electronics Private Limited, Wholly Owned Subsidiary of Dixon Technologies (India) Limited, has been awarded manufacturing contract by Lenovo for the manufacturing of IT Hardware products i.e. Laptops and Notebooks under Production Linked Incentive 2.0 Scheme (“PLI”), subject to signing of definitive agreement in due course," said the company in its exchange filing.
 
On the development, Atul B. Lall, Vice Chairman & Managing Director, Dixon Technologies (India) Limited, said, "The tie-up will give a strong impetus to India’s manufacturing competitiveness. Lenovo will bring in global know-how and processes to manufacture IT hardware products. "We are delighted and encouraged by the trust Lenovo has reposed on Dixon for the association and believe that this association will leverage our excellence and superior execution track record, and it represents a major milestone in the Indian Government's “Make in India” initiative," he added.
 
Dixon Technologies in a year has zoomed over 64 per cent, while its 3-year return is at 159 per cent. The average brokerage target for the counter is Rs 4,668, which is a steep 29 per cent downside from the current market price. The consensus recommendation on the stock from 23 analysts is a 'hold', with 10 of them signaling a 'strong buy', as per Trendlyne.