InvestorQ : What explains the huge rally in Dixon Technologies? Do you still upsides in the stock?
diksha shah made post

What explains the huge rally in Dixon Technologies? Do you still upsides in the stock?

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Sam Eswaran answered.
6 months ago
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Dixon Technologies has been one of the phenomenal performers in the market since the IPO first came out. Dixon is one of India’s leading players in electronic production outsourcing and it has been on a roll in recent months. Dixon has a wide product portfolio consisting of LED TVs, washing machines, smart phones, CCTVs and medical equipment.

In the last one year, the stock of Dixon has rallied nearly 250% at a time when the Nifty and Sensex have given returns of around 14.5%. Dixon is one of the largest outsourcing plays in India and it got a major boost after the government of India announced the product linked incentive or PLI scheme to give a boost to make in India and manufacture for others.

The latest rally in the stock was driven by its wholly-owned subsidiary, Padget Electronics, entering into a collaboration agreement with Motorola of the United States for manufacture of smart phones. That is one of the major items in the diverse product portfolio of Dixon. These smart phones will be manufactured at Padget's facility in Noida.

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