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Dixon Technologies hits 52-week low, stock down 19% in six trading days

The stock has been under pressure despite the company clarifying that there is no adverse impact on the business of the company due to the ED seizure of assets of Chinese mobile manufacturing company

Buzzing stocks | Dixon Technologies (India) | Market trends

SI Reporter  |  Mumbai 

Workers assemble smartphones at Dixon Technologies' Padget Electronics Pvt factory in Noida (Photo: Bloomberg)

Shares of hit a 52-week low of Rs 3,548, down 5 per cent on the BSE in Tuesday’s intra-day trade. The stock has fallen below its previous low of Rs 3,760 touched on August 24, 2021.

Thus far in the month of May, in the past six trading sessions, the stock of the consumer electronics company has slipped 19 per cent despite the company clarifying that there is no adverse impact on the business of the company due to the Enforcement Directorate's (ED) seizure of assets of Chinese mobile manufacturing company . The stock has also been under pressure due to concerns over decline in operating margin mainly due to sharp increase in the raw material costs.

“The significant movement in the price of the security of can be consequence of recent circulated widely in the media regarding one of our key customer in LED TV business,” the company said in exchange filing on May 2, 2022. “We would like to submit to the exchange that there is no adverse impact on the business of the Company and the Company perceives no impact on its receivables,” it added.

Dixon is a company engaged in inter-alia manufacturing of the products in the consumer durables, lighting, home appliances, mobile phones and other electronic items in India. The company caters to global as well as domestic brands as an original equipment manufacturer (OEM) and an original design manufacturer (ODM).

Dixon’s mobile & electronic manufacturing services (EMS) division accounted 31 per cent of the company’s overall revenue and 27 per cent of operating profit contribution for the quarter ended March 2022.

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First Published: Tue, May 10 2022. 10:22 IST