The FPI stake in the company stood at 12.27 percent at the end of the June quarter against 10.76 percent in the March quarter.
Dixon Technologies (India) share price surged over 9 percent to hit its fresh all-time high of Rs 7,036 in intraday trade on BSE on July 20.
Shares of the company surged after a BSE data released by the company on July 20 showed foreign portfolio investors (FPIs) raised their stake to 14,19,732 shares in the June quarter of 2020 against 12,44,620 shares held in March quarter.
FPI stake in the company stood at 12.27 percent at the end of the June quarter against 10.76 percent in the previous quarter.
Under the FPI category, Goldman Sachs India held 1,99,987 shares, or 1.73 percent stake, and Taiyo Greater India Fund held 1,96,542 shares, or 1.70 percent stake, in the company.
As of the previous session closing, the stock has jumped 70 percent in the calendar year 2020 against a 10 percent fall in benchmark Sensex.
Senior Research Analyst at Samco Securities Nirali Shah is positive on the stock from a long-term perspective.
"The company is currently facing muted demand due to different lockdown rules in various states. But with the economy reviving, it is expected to see growth in both revenues and margins driven by new customer additions, import-substitution, ODM migration and commencement of the washing machine production," Shah said.
"The PLI (production-linked incentive) scheme is also expected to further present opportunities for Dixon Tech. Hence, long-term investors can buy on correction as the balance sheet and growth opportunities for this company are robust. It also has a stronghold on its working capital and generated positive free cash flows in FY20," Shah added.
Shah is of the view that with a loyal client base of Philips, Nokia, Samsung and the likes, economies of scale and a backward integration model, Dixon will be able to deliver growth once the situation normalises and there is an uptick in demand.
Siddharth Sedani, Vice President, Equity Advisory, Anand Rathi Shares and Stock Brokers, too, has a positive view on the stock.
"Dixon is ideally positioned for a quantum leap from being a demand aggregator (its domestic operations for existing customers) to becoming a strong contract manufacturer, especially of mobile-phone components. This would be helped by favourable government policies, which entail CAPEX-linked incentives," Sedani said.
Sedani said the company's plans for backward integration into mobile phones would benefit from the proposed government scheme.
Increasing washing-machine, mobilephone and TV set volumes from Samsung and the pace of customer addition in each business segment are key positive for the company.
Sedani said a pick-up in lighting exports, for which, one of its leading customers, through its global supply chain, is aiding Dixon’s entry in the US and Europe, while rising deemed exports from existing MNCs (Philips, Samsung, Xiaomi) will also boost the growth prospects of Dixon.
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