Why Dixon Technologies share zoomed 14% today

Shares of Dixon Technologies India rallied over 14 per cent to hit 52-week high of Rs 4,588 on the Bombay Stock Exchange in early trade on Thursday, in line with consumer durables index which was up 1 per cent. The stock turned ex-stock split in the ratio of 1:5 i.e. from Rs 10 to Rs 2. Dixon Technologies share price breached its previous high of Rs 4,300 touched on March 15, 2021.

The Noida-based electronics manufacturing services company had fixed March 19 as the record date for a stock split which was approved by its board at their meeting held on February 2. It had approved sub-division of existing one equity share of the face value of Rs 10 each fully paid up into five equity shares of Rs 2 each fully paid up, subject to shareholders' approval.

A stock split decision is generally taken by the company to make the shares more affordable for small retail investors and boost liquidity.

Dixon Technologies shares opened higher on Thursday at Rs 4,106 against previous closing price of Rs 4,014.95. Extending early gains, the stock gained as much as 14.27 per cent to hit fresh high of Rs 4,588. The market cap of the stock surged to Rs 25,302 crore. On the volume front, there was surge in trading as 47,000 shares changed hands over the counter as compared to two-week average volume of 3,998 shares.

Dixon Technologies (India) Ltd shares have declined 15 per cent over last one month compared to 2.23 per cent gain in BSE Consumer Durables index and 3.5 per cent drop in Sensex. The BSE CDS index was currently trading at 32,885.15, up by 423.32 points or by 1.3 per cent. Dixon Technologies was top gainer in this sector, followed by Orient Electric Ltd. (Rs 323, 3.38%), Crompton Greaves Consumer Electricals Ltd. (Rs 393.65, 1.97%), Titan Company Ltd. (Rs 1,483 0.70%), Bajaj Electricals Ltd. (Rs 955.55, 0.61%), among others.

For December quarter of 2020, Dixon Technologies reported an over two-fold jump in its consolidated net profit to Rs 61.59 crore as compared to Rs 26.30 crore in the year ago period, on sharp growth in its revenue. Its revenue from operations soared two-folds to Rs 2,182.78 crore in the quarter against Rs 993.81 crore of the corresponding quarter last fiscal.

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