New Delhi, Sept. 18 -- The government's fillip to manufacturing in India has heightened the buzz around contract manufacturers such as Dixon Technologies Ltd. Its shares have been sprinting, gaining nearly 148% in 2020, contrasted with the Nifty's drop of 6%.
Sure enough, while the local manufacturing boost will see Dixon's domestic business scale up, the stock's quoting at stiff valuations. Normally, contract manufacturers sport lower valuations than branded companies. In India, Dixon has zoomed past Havells India Ltd, which sells lighting and other white goods. Dixon's oneyear- forward price-earnings multiple has raced to 64 times, compared with Havells' 59 times.
Dixon has applied for the production-linked incentive scheme to manufactu...