Dixon Technologies share price rose 4.42% on BSE to an all-time high of Rs 5580 in Thursday's session after Samsung said it plans to expanding its partnership with the Indian manufacturer to produce TVs locally.
Dixon Technologies stock has been gained 11.29% returns in the last 5 days of straight gains and today hit a new 52-week and all-time high of Rs 5,580 today.
The rise in the share price of Dixon Technologies was backed by the announcement that Samsung is set to bring down the tally of TVs imported from its plants in other countries and locally manufacture almost 85-90% of the televisions they sell in India, expanding their partnership with Dixon Technologies.
The country's largest television brand has also decided to expand its contract with the Indian manufacturer to produce smart TV variants from 43-58 inches in India. Dixon Technologies was earlier manufacturing 32 and 43 inches TV sets for Samsung.
This was on the back of PM Modi's boost on Aatmanirbhar Bharat.
Dixon Technologies is trading higher than 5, 20, 50, 100 and 200-day moving averages. The stock has risen 11% in one week, 29% in one month and 45% year-to-date.
In another update, Dixon Technologies's MD Atul Lall told BloombergQuint in an interview that he expects India to become a hub of contract manufacturing for consumer electronics. He added the consumer durables industry was likely to witness a lot of pent-up demand, due to the virus-induced lockdown, especially for brands with an online presence.
Many brokerage have rated Dixon's Q4 numbers ahead of its estimates and retained their buy call on the stock with expectations of double-digit returns. The contract manufacturer of lighting, televisions, mobile phones and home appliances expects to grow 20-25% each year.
Dixon Technologies reported strong quarterly numbers, refecting stellar performance in consumer electronics segments. Company's consolidated net profit jumped 66.8% YoY to Rs 27.58 crore. For the year, it reported a mere 0.2% decline in net revenue to Rs 857.41 crore in Q4 March 2020.
Emkay Global in its recent note said Dixon's revenues were in line with expectations, adding that continues to add new customers in key product categories.
Dixon Technologies has clients like Xiaomi, Samsung, Voltas, LG, Flipkart and Foxconn.
The company also plans to hold investor call meetings with ICICI Prudential, Motilal Oswal AMC and others between June 18-24.