Dixon Technologies has given strong returns, doubling investor wealth in just 1 year. The stock has risen 112 percent in the last 1 year, rising from Rs 2,197 to Rs 4,664 per share.

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Experts are bullish on the design-focused and solutions company that manufactures products in consumer durables, lighting, and mobile phone spaces.

The company, which listed on the bourses in September 2017, has rallied over 75 percent since then. Just in 2020, it has added 21 percent. It hit its 52-week high of Rs 4,899 on February 5, 2020, and a 52-week low of Rs 1,830.90 on August 8, 2019. The current market capitalisation of the company stands over Rs 5,250 crore.

Most brokerages expect the stock to cross Rs 5,00 per share in the near future. Axis Securities has a "buy" rating, with a 12-month target of Rs 5,116 for the stock.

Dixon is expanding capacities across segments based on strong order book from existing and new customers. Higher capacity utilization, new customer additions, and increased product offerings are expected to drive revenue and profit growth going forward, said the brokerage. Given the sharp run-up in the price of the stock in the recent past, it advises investors to buy the stock in a staggered manner.

December quarter results were strong for the company with the net sales rising 31 percent on a YoY basis, whereas the bottom line surged 54 percent. Consumer electronics, lighting, and mobile businesses of the company witnessed robust growth for the quarter.

The recent revision in customs duty on Printed Circuit Board (PCB) assembly from 10 percent to 20 percent in the Union Budget may also benefit the firm, analysts further noted.

Among peers as well, Dixon proved to be unbeatable. Stocks like TTK Prestige, Bajaj Electrical were in the red for the last 1 year, while Blue Star and Orient Electrical gave positive returns but not as much as Dixon.

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First Published:Feb 7, 2020 12:50 PM IST