Dixon Technologies trades above ₹10,000 again after stock split in 2021, turns ₹1 lakh investment into ₹3 lakh in 3 years

On February 2, 2021, the board of the firm announced a stock split in the ratio of 1:5 following which shares of the company traded near the ₹15,850 level during the day. The stock underwent a split on March 18, 2021, which meant every share with a face value of ₹10 got divided into five shares with a face value of ₹2 each.

If an investor had bought ₹1 lakh worth of Dixon Tech shares on the day of the announcement of the split in February, they would have received six shares of the company. Following the split in March, the number of shares with the investor would have risen to 30 (6 shares multiplied with the split ratio of 5). As a result, at the Friday’s high of ₹10,088, the investor’s original investment would be worth ₹3,02,640, indicating a 200% return in a matter of just over three years.

Company Update

Dixon Technologies on Thursday announced it has entered into an agreement with HKC Corporation to form a joint venture for the manufacturing of liquid crystal modules (LCMs) and thin film transistor liquid crystal display modules (TFT-LCD Modules). The proposed joint venture will also be involved in the assembly of end products like smartphones, TVs, monitors, and auto displays as well as sales of HKC-branded end products in India.

HKC Corporation is a technology company focusing on the field of semiconductor display and its main business is to develop and manufacture semiconductor display panels, core display devices and intelligent display terminals.

Atul B Lall, vice chairman and managing director of Dixon Technologies said the venture will give a boost to set up an electronic component ecosystem while also deepening the value addition.

Shares of the company have risen by nearly 55% since the beginning of the year. The stock has gained over 155% in the last one year.