Dixon Technologies Shares Surge 6% As Unit To Manufacture Asus Notebooks

Shares of Dixon Technologies (India) Ltd. rose over 6% on Monday, after its wholly-owned subsidiary Padget Electronics Pvt., signed a memorandum of understanding with Asus India to manufacture notebooks for the company.

The pact between Padget Electronics Pvt. and Asus will be subject to the signing of definitive agreements in due course, according to an exchange filing on Friday.

Asus is a global supplier of motherboards, laptops, computers, graphic cards and related IT products.

Shares of Dixon were trading 6.84% higher at Rs 13,918.60 apiece on the NSE, compared to a 0.15% rise in the benchmark Nifty. The share price has risen 163.8% in the last 12 months and 112.4% on a year-to-date basis.

The total traded volume in the day stood at 1.74 times its 30-day average. The relative strength index was at 68.08.

Sixteen out of the 32 analysts tracking the company have a 'buy' rating on the stock, six suggest 'hold' and 10 recommend 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 13.9%.