Dixon Tech, Netweb: This announcement will give thrust to important electronics where India is reliant on imports, said Divam Sharma, Founder and CEO of Green Portfolio PMS.
- Netweb Technologies provides high-end computing solutions, high-performance computing systems.
- Dixon offers design-focused solutions in home appliances, lighting, mobile phones and security devices.
- Ongoing PLI scheme for manufacturing IT hardware may get a significant boost, say analysts.
Shares of Dixon Technologies Ltd and newly-listed Netweb Technologies Ltd climbed over 8 per cent in Friday’s trade to take their two-day gains to 17 per cent after the government put restrictions on import on laptops, tablets and personal computers. The government in a notification said the imports would be allowed against a valid licence for restricted imports.
This announcement will give thrust to important electronics where India is reliant on imports, said Divam Sharma, Founder and CEO of Green Portfolio PMS.
“Netweb, Dixon and other similar players are already sensing the tailwinds. There is an ongoing PLI scheme for manufacturing IT hardware, which will get a significant boost and will attract key global manufacturers to produce electronics locally,” Sharma said.
Shares of Dixon Tech climbed 8.42 per cent to hit a high of Rs 4,812.70 on BSE. The stock is up 16.68 per cent for the two-day period. Netweb Technologies hit a high of Rs 900 and was up 5 per cent for the two-day period.
Dixon Technologies is engaged into electronic manufacturing services (EMS) space in India. It offers design-focused solutions in consumer durables, home appliances, lighting, mobile phones and security devices. It also offers repairing and refurbishment services for a wide range of products including set top boxes, mobile phones and LED TV panels.
Netweb Technologies, on the other hand, provides high-end computing solutions (HCS), offering high-performance computing (supercomputing/HPC) systems; private cloud and hyper-converged infrastructure (HCI); AI systems and enterprise workstations; high-performance storage solutions; data center servers, software and services.
Anirudh Garg, Partner & Head of Research at Invasset PMS said companies like Netweb Technologies and Dixon Technologies stand to benefit from this policy, expanding their domestic market share and aligning themselves with India’s push to become a world leader in semiconductor manufacturing.
“The restriction of these imports, coupled with a focus on indigenous production and export enhancement, reflects the government’s dedication to reducing dependence on imports – a necessary pathway to achieve the target of becoming the 3rd largest economy by 2029,” Garg said.
Reference Link:- https://www.businesstoday.in/amp/markets/stocks/story/dixon-tech-netweb-shares-gain-up-to-17-in-2-days-analyst-views-on-govt-import-restriction-392794-2023-08-04