New client additions to turbocharge growth for Dixon Technologies

The news of Dixon Technologies’ tie-up with HP in addition to its existing Lenovo and Acer partnerships has led to a 5 per cent stock uptick since the start of the week. Dixon can target roughly 60 per cent of India’s addressable IT hardware market with these contracts.

Dixon targets Rs 48,000 crore in revenue from IT hardware under the PLI scheme over the next six years. This implies it hopes to achieve about 17 per cent market share by 2030. Given that the IT PLI regulations need incremental backward integration, this could be return-dilutive over the