Dixon Technologies' flight against valuation gravity: Can it defy the pull?

Meeting lofty expectations amid expensive valuations: The litmus test for electronics manufacturing services

Stocks of electronics manufacturing services companies have been major outperformers, with four of the top eight listed majors by market capitalisation doubling their value over the past 12 months. The biggest gainer in this space has been the market leader, Dixon Technologies (India), which is up nearly threefold.

Although investor interest in the sector and the stock is expected to remain high, sustaining the rally will be crucial given that valuations are in the expensive zone. The extent of further gains for these companies will depend on their ability to meet lofty expectations. While there have