Shares of consumer electronic makers rallied on the bourses in Thursday’s trade after the central government restricted imports of laptops, tablets, and personal computers with immediate effect in a fillip to domestic electronic manufacturing.
The share price of consumer electronics maker Dixon Technologies surged 8.3 per cent to its intra-day high of Rs 4,467 apiece on the BSE.
HCL Infosystems rallied 9 per cent to a high of Rs 17.40 and telecom equipment player Optiemus Infracom jumped 8 per cent to the day’s high of Rs 222.
Even stocks from the home appliance space saw sentimental buying with Crompton Greaves, PG Electroplast and Amber Enterprises climbing up to 3 per cent.
The Indian market is heavily dependent on imports from China for consumer electronics such as phones, laptops and tablets, among others.
The notice from the Directorate General of Foreign Trade reportedly said that the imports of laptops, tablets, all-in-one personal computers, and ultra small form factor computers and servers falling under HSN 8741 would be restricted and allowed against a valid licence for restricted imports.
These imports shall be subject to payment of duty as applicable, it further added.
Consumer electronics major Dixon Technologies also deals in the IT hardware segment and is a beneficiary under the IT hardware (laptop & tablet) products PLI scheme. The company manufactures laptops for many renowned brands.
In November 2021, Dixon had partnered with Acer India for laptop manufacturing at its facility with a capacity to make up to 500,000 Acer laptops annually.
Contract manufacturer Optiemus Electronics (arm of Optiemus Infracom) too forayed into laptop manufacturing in March this year by partnering with laptop brand Primebook, for specially designed laptops for students priced at Rs 14,990, as per reports.
“Electronics Manufacturing Services (EMS) sector is abuzz due to the development, which will benefit players such as Dixon and Optiemus Infra. Dixon plans to manufacture Acer laptops in India under the PLI scheme, while Optiemus Infra aims to produce up to 1.5 lakh laptop units annually. The EMS theme exhibits strong traction with significant growth opportunities in India, making it an attractive long-term investment option. Our top picks in this space are Dixon Technologies, Syrma, and Cyient DLM,” said Santosh Meena, Head of Research, Swastika Investmart.
Dell , Acer, Samsung, LG, Panasonic, Apple Inc, Lenovo and HP Inc are some of the key companies in the unlisted space selling laptops in the Indian market.