Dixon Technologies declines 4% after inspection by DRI

In the last one year, the stock has gained nearly 78 percent on the exchanges, comfortably higher than the Nifty's 20 percent gain over the same period.

Shares of Dixon Technologies Limited plunged 4.4 percent to Rs 6,020 on January 19 after the company said that the Directorate of Revenue Intelligence (D.R.I) conducted a search at the manufacturing facility of one of its subsidiaries in Noida on Wednesday, January 17.

The search is related to the classification of imported raw materials used in the manufacturing of a specific product at the facility, but the company did not disclose details about the product or the raw material involved.

At 12:44 pm, the stock was trading at Rs 6,151, down 2.5 percent from the previous close on the NSE.

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The counter closed at Rs 6,303, down 1 percent from the previous close on the NSE. In the last one year, the stock has gained nearly 78 percent on the exchanges, comfortably higher than the Nifty's 20 percent gain over the same period.

Dixon mentioned that while the impact on financial, operational, and other activities of the listed entity cannot be quantified presently, the company's assessment indicates no significant impact on financial operations or any other activities.

"The issues raised by the D.R.I are interpretational in nature and we stand committed to defend our interpretation using all recourse available to us," the Dixon exchange filing said, further adding that the company has extended full cooperation to the D.R.I, including providing the complete information on time.

The electronic goods manufacturer reported a 47.1 percent year-on-year (YoY) jump in net profit at Rs 113.4 crore for the second quarter that ended September 30, 2023.