Dixon Technologies share up after unit inks MoU with HP India; details here
Source: Business Standard
Dixon Technologies stock gains: Electronics manufacturing company Dixon Technologies shares rose as much as 2.3 per cent in the morning deals on Tuesday, September 10. The Dixon Technologies scrip logged an intraday high of Rs 12,675.1 per share on BSE.
The uptick in Dixon Technologies stock came after the company’s subsidiary, Padget Electronics Private Limited, signed a Memorandum of Understanding (MoU) with HP India Sales Private Limited, for the manufacturing of notebooks, desktops, and all-in-one PCs.
However, at around 1:05 PM, shares of Dixon Tech were off highs and were trading a little over 1 per cent higher at Rs 12,514.55 apiece, as against BSE Sensex’s gain of 480.7 points at 82,040.24.
Dixon Technologies, via an exchange filing said, “We wish to inform you that Padget Electronics Private Limited, a wholly owned subsidiary of Dixon Technologies (India) Limited, has entered into an MOU with HP India Sales Private Limited for manufacturing of notebooks, desktops, and All-in-one PCs.”
Meanwhile, domestic brokerage Kotak Institutional Equities has raised its fair value (FV) to Rs 7,330 per share, from Rs 6,900 earlier. The brokerage, however, retained its ‘Sell’ rating on the stock.
“While tie-ups with HP, Lenovo, and Acer could help, we believe a higher capex requirement could imply IT hardware PLI might be return-dilutive over the shorter term,” the brokerage said.
Further, analysts at Kotak Institutional Equities have raised their FY27 estimates by 3-4 per cent largely on account of a faster ramp up of IT hardware revenue.
“The outlook for H2FY25 continues to be strong, driven by ramp up of smartphone volumes from the Ismartu acquisition. Further, Dixon has indicated one more potential customer addition in smartphones and remains the next catalyst for mobiles,” the brokerage added.
Apart from that, international brokerage Morgan Stanley maintained an ‘Equalweight’ rating on Dixon Technologies for a target price of Rs 8,696 per share, according to reports. The brokerage said HP India is the third largest customer that Dixon Technologies has onboarded in the IT hardware segment after Lenovo and Acer.
In the past one year, the shares of Dixon Tech have given returns of 141.8 per cent against BSE Sensex’s rise of 22.4 per cent.
First Published: Sep 10 2024 | 1:33 PM IST
