Dixon Tech Shares Jump To Record As Subsidiary Padget Gets Lenovo's Laptop Order
Padget Electronics has been awarded contract by Lenovo to manufacture laptops, notebooks and other IT hardware under the PLI 2.0 scheme.
Shares of Dixon Technologies Ltd. jumped to a lifetime high after the company said that its wholly owned subsidiary Padget Electronics Pvt. has received an order from Lenovo.
Padget Electronics has been awarded contract by Lenovo to manufacture laptops, notebooks and other IT hardware under the Production Linked Incentive 2.0 Scheme, according to an exchange filing on Monday. It is subject to signing a definitive agreement in due course, it said.
"We are confident that this partnership will also scale up localization and creation of component ecosystem & employment opportunities in India," the company said.
The scrip rose as much as 6.16% to a record Rs. 6,765 apiece. It pared gains to trade 5.14% higher at Rs 6,700 apiece as of 09:47 a.m compared to a 0.12% advance in the NSE Nifty 50 Index.
The stock has risen 71.5% year-to-date. The total traded volume so far in the day stood at 17 times its 30-day average. The relative strength index was at 85, indicating that the stock may be overbought.
Out of 27 analysts tracking the company, 15 maintain a 'buy' rating, 5 recommend a 'hold,' and 7 suggest 'sell,' according to Bloomberg data. The average of 12-month price targets implies a downside of 18.9%.
