Dixon Technologies Hits 52-Week High on Lenovo Contract, Shares Surge 5%

12 Dec 2023 , 10:16 AM

Dixon Technologies shares surged 5% to a 52-week high of Rs 6,710.40 on December 12 after its subsidiary, Padget Electronics, secured a manufacturing contract from Lenovo.

Lenovo awarded Padget Electronics the manufacturing contract for IT hardware products related to laptops and notebooks under the Production Linked Incentive 2.0 scheme. The agreement is subject to the signing of a definitive agreement.

Padget Electronics recently inaugurated a smartphone manufacturing plant in Noida, Uttar Pradesh, on November 30.

Lenovo holds a global market share of 20-23% for desktops and laptops and 7-10% for tablets. In the September quarter, Dixon Technologies reported a 39% YoY increase in net profit to Rs 107.32 crore, while revenue rose by 28% to Rs 4,943.18 crore.