On Thursday afternoon, the shares of India’s second-largest mobile phone maker rose 8 percent to Rs 4,467.15 per share after the government restricted imports of electronic devices such as laptops, tablets, and personal computers.
Shares of electronics manufacturer Dixon Technologies shares were trading at Rs 4,394.75 a share on the National stock exchange at 2:16 p.m., up Rs 266 or 6.45 percent from the previous close.
According to a notification from the Ministry of Commerce and Industry, imports of laptops, tablets, and personal computers under HSN 8471 have been restricted with immediate effect, and their imports will be authorised only with a valid limited entry Licence.
According to the Ministry, restrictions would not apply to imports subject to Baggage Rules. Up to 20 such products per shipment are excluded from licensing for Research and Development testing, benchmarking and evaluation, repair and re-export, and product development reasons.
The import restrictions come amid pressure on India’s trade balance, with the goods trade deficit reaching $20 billion in both May and June.
India’s imports fell by 12.7 percent in April-June compared to the first quarter of 2022-23, while exports fell by an even greater 15.1 percent.
In the previous six months, the stock has increased by 59 percent, and in the last year, it has increased by 17 percent.
Dixon Technologies is engaged in the electronic manufacturing services market.Company offers design-focused solutions in consumer durables, home appliances, lighting, mobile phones and security devices.
The company’s sales increased by 22 percent from 2,855 crore in Q1FY23 to Rs 3,271 crore in Q1FY24.Additionally, its net profit increased by 42 percent from Rs 64 crore in Q1FY23 to Rs 45 crore in Q1FY24,
The company’s operating margin stands at 3.31 percent and net profit margin stands at 2.07 percent.
According to the current shareholding pattern, the promoters hold a 34.04 percent stake, Foreign institutional investors hold 15 percent and Domestic institutional investors hold a 24.61 percent stake in the company.
Written by Omkar Chitnis
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