The stock surpassed its previous high of Rs 8,822, touched on August 28, 2020, on the BSE. With 10 per cent rally in the past week, the stock has rallied 208 per cent from its recent low of Rs 2,900, hit on March 24, 2020.

Dixon is the largest electronic manufacturing services (EMS) player in India with a diversified product portfolio in various sub-segments of the electronics verticals. It is the largest Home-grown electronic manufacturer, providing design focused solutions in multiple business segments to customers across the globe.

Indian EMS Market size was approx. $6 billion in FY20 and is expected to touch $40 billion by 2025 at a CAGR of 47 per cent from 2020 to 2025.

“Rising manufacturing costs in other economies, growing labour costs in China & tendency by bigger original equipment manufacturer (OEMs) to outsource manufacturing instead of building their own infrastructure is driving growth of EMS market in India. More & more brands are going to focus on branding & distribution & manufacturing as part of the value chain will be outsourced,” Dixon said in FY20-21 annual report.

Growth in underlying sector – increase in demand of consumer electronics, home appliances, mobile phones and LED lighting products has led of proliferation of the EMS market in India. The introduction of electronics sector-specific policies and commitment by the government to grow domestic manufacturing; lower import dependence; energize exports; produce a conducive business environment are additional factors driving growth, it said.

“While Q1FY21 was hurt by the lockdown, Dixon continues to lead the government’s self-dependence measures to manufacture consumer durables. It is well placed to benefit from the performance linked incentive (PLI) scheme, for which submissions have been made.The recent notification putting television imports in the restricted category also augurs well for Dixon and supports customer additions. Expansion of Reliance Jio can further increase Dixon’s addressable set-top boxes and be another Rs 1,000 crore opportunity waiting to unfold in coming years,” analysts at Anand Rathi Share and Stock Brokers said in company update. The brokerage firm has ‘buy’ rating on the stock with 12-month target price of Rs 9,834 per share.

At 11:09 am, Dixon was trading 2.7 per cent higher at Rs 8,808 on the BSE, against 0.15 per cent fall in the S&P BSE Sensex. A combined around 43,000 equity shares have changed hands on the counter on the NSE and BSE, so far.