Shares of Dixon Technologies slipped 1.4 percent to a one-month low of Rs 4,738 per share on the BSE intraday on September 25 following reports of the government deferring the import curbs on personal computers, laptops and tablets by 9-12 months from October 30.

The stock price of this electronic device manufacturing service (EMS) player has has so far skid 9.3 percent from its 52-week high of Rs 5,225 touched on September 5.

The shares of Dixon Tech has shed 5 percent so far thins month as against a 2 percent gain in the benchmark Sensex.

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Analysts at Kotak Institutional Equities shared a ‘sell’ call on the counter, noting downside risks to Rs 4,000 future value (FV) as it turned cautious on the entire EMS space.

“The news flow around the ministry’s decision to defer regulatory restrictions by another 2-3 quarters suggests a meaningful dilution of pace in scale-up of IT hardware manufacturing in India,” the brokerage firm added.

The Ministry of Electronics and IT (MeitY) is said to have recommended to call off plans to impose licensing requirements for the import of IT hardware products, such as laptops, tablets and servers, even in the longer term.

Until October 2024, there would not be any quantity control on the import of IT hardware products. The report said that the import authorisation will be given to firms based on three parameters: import value of previous year or an average of the past three years for IT products and domestic manufacturing of IT hardware devices.

The import management system will be managed by the Directorate General of Foreign Trade (DGFT), and the process will be fully online.

Analysts at Kotak noted that the impediments to scale-up of laptop manufacturing versus that of mobile manufacturing is based on inherent differences like smaller market size, limited case of value addition from EMS players, laptops or tablets do have not a duty arbitrage to incentivise local manufacturing, and absence of large laptop brand (such as Apple in mobile phones).

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Shares of Dixon Technologies slipped 1.4 percent to a one-month low of Rs 4,738 per share on the BSE intraday on September 25 following reports of the government deferring the import curbs on personal computers, laptops and tablets by 9-12 months from October 30.

The stock price of this electronic device manufacturing service (EMS) player has has so far skid 9.3 percent from its 52-week high of Rs 5,225 touched on September 5.

The shares of Dixon Tech has shed 5 percent so far thins month as against a 2 percent gain in the benchmark Sensex.

Follow live blog for constant updates on market

Analysts at Kotak Institutional Equities shared a ‘sell’ call on the counter, noting downside risks to Rs 4,000 future value (FV) as it turned cautious on the entire EMS space.

“The news flow around the ministry’s decision to defer regulatory restrictions by another 2-3 quarters suggests a meaningful dilution of pace in scale-up of IT hardware manufacturing in India,” the brokerage firm added.

The Ministry of Electronics and IT (MeitY) is said to have recommended to call off plans to impose licensing requirements for the import of IT hardware products, such as laptops, tablets and servers, even in the longer term.

Until October 2024, there would not be any quantity control on the import of IT hardware products. The report said that the import authorisation will be given to firms based on three parameters: import value of previous year or an average of the past three years for IT products and domestic manufacturing of IT hardware devices.

The import management system will be managed by the Directorate General of Foreign Trade (DGFT), and the process will be fully online.

Analysts at Kotak noted that the impediments to scale-up of laptop manufacturing versus that of mobile manufacturing is based on inherent differences like smaller market size, limited case of value addition from EMS players, laptops or tablets do have not a duty arbitrage to incentivise local manufacturing, and absence of large laptop brand (such as Apple in mobile phones).

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.