Dixon Technologies stock hits all time high, surges 6.1% on Lenovo contract

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₹6,765 per share during Tuesday's intraday trade. This surge followed the company's announcement that its wholly-owned subsidiary, Padget Electronics Private Limited, secured a manufacturing contract from Lenovo for IT hardware products, i.e., laptops and notebooks, under the Production Linked Incentive 2.0 Scheme (“PLI"). The finalisation of this agreement is expected through the signing of a definitive agreement.

Also Read: Sterling and Wilson share price hits 5% upper circuit on QIP launch On November 30, Padget Electronics commenced smartphone production for Xiaomi at its newly inaugurated manufacturing facility in the Noida district of Uttar Pradesh. The plant has an annual capacity of 25 million units. Dixon Technologies' stock, which experienced a decline of nearly 29% in CY22 after several years of robust growth, has rebounded remarkably in the current year.

The company shares have rallied 70% in CY23 so far, spiking from ₹3,927 to ₹6,670 apiece, and they are up by 161% from their one-year low of ₹2,553. In the past seven months, the stock closed positively in five, with the most notable monthly performance in May, registering a remarkable gain of 33%. Also Read: Navigating risks and opportunities in mid and small-cap stocks: Expert insights According to analysts, the company will benefit in the long run from scaling up its existing verticals, new customer additions, and expansion into other verticals such as refrigerators, LED monitors, AC components, and other hardware products.