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Dixon Technologies promoter and chairman Sunil Vachani sells stake

As the stock scales an all-time high, Dixon Technologies chairman Sunil Vachani sells shares worth 797 million

One of India's biggest manufacturing service companies, Dixon Technologies, has been enjoying a stellar run over the past six months. From an all-time low of Rs.1,560 in August 2019, the stock gained more than 200% to hit an all-time high of Rs.4,895 in February 2020 and now trades at Rs.3,850. Besides winning manufacturing contracts from consumer electronic biggies such as Xiaomi, Samsung and Reliance Jio, robust earnings growth in Q3FY20 has powered this runaway rally. Driven by consumer electronics and lighting, the company’s Q3FY20 revenue grew 25% year-on-year, while net profit jumped 49% for the same period due to the new tax regime under which the tax rate for the company reduced from 35% to 26%. The company is also increasing its annual capacity from 3.6 million to 4.8 million units by May 2021.