After months of pressure from rising memory chip cost worries and expensive valuations, Dixon Technologies may finally have multiple catalysts working in its favour. Once a market favourite that delivered returns of more than 200% over the last five years, the stock is currently trading nearly 30% below its 52-week high of Rs 18,471.
Now, three developments could help change sentiment. Government approval for its long-awaited joint venture with Vivo, fresh policy support for domestic smartphone manufacturing and expanded customs duty concessions for electronics manufacturing have strengthened the company's growth outlook. Brokerages also believe these developments could improve volume visibility, margins and long-term earnings.
