D-Link India's shares rose 17 percent to a new high of Rs 556.75 on the BSE in Tuesday's intra-day trade, boosted by robust volumes and a positive outlook. The stock of the computer hardware and equipment firm has risen 78 percent in the last two months, after the company announced a dividend of Rs 13 per share on May 11, including a special payment of Rs 5 per share. On July 12, 2024, the shares will reach the ex-date for the special and interim dividends.
Thus far in the fiscal year 2024-25 (FY25), the stock of a small-cap business has quadrupled from Rs274. In the last two years, it has risen 364 percent from Rs120 on the BSE. If we speak of D-Link India, it is a subsidiary of Taiwan's D-Link Corporation, is one of India's leading networking firms. The firm specializes in the marketing and distribution of networking products in India and the SAARC area.
The Indian government is launching a series of steps to boost the country's IT hardware business. These programs include the Production-Linked Incentive (PLI) scheme, the National Manufacturing Policy, and the Startup India initiative. These programs include the National Manufacturing Policy, the Startup India initiative, and the production-linked incentive (PLI) scheme. These measures are anticipated to stimulate investment, job creation, and export development, all of which will contribute to the expansion of the Indian IT hardware sector.
The development of new technologies like artificial intelligence (AI), cloud computing, and the Internet of Things (IoT) is also anticipated to be beneficial to the Indian IT hardware sector. It is anticipated that these technologies would generate new demand for IT hardware services and goods.
With a solid relationship to system integrators, D-Link India is a major participant in the small office, home office, and small and medium company segments. The business also targets other important sectors in parallel, such as manufacturing, BFSI, government, and education. The Ethernet switch, router, and WLAN markets are anticipated to see single-digit compound annual growth rates (CAGRs) between 2021 and 2026, according to a report by IDC. Additional income would come from a greater uptake of emerging technologies like cloud, IoT, mobility, etc. Large expenditures are also anticipated by IDC for 5G rollouts in the upcoming years.
From 2023 to 2028, the India router market is projected to expand at a robust compound annual growth rate (CAGR) of 9.20%. Numerous reasons, including as the rising number of connected devices, the growing need for high-speed internet, and the expanding adoption of smart homes and businesses, are driving the market's expansion.
India's WLAN market is expanding quickly, with a CAGR of 20.2% is anticipated over the next several years, driven by the growing popularity of new technologies like Wi-Fi 6 and Wi-Fi 6E as well as the requirement for secure wireless access.
D-Link India stated in its FY23 annual report that as part of its "Made in India" campaign, the firm is heavily concentrating on domestic products. The Indian government has launched two significant and interconnected initiatives: "Make in India" and product localization.
India's structured cabling sector has a promising future. The market is anticipated to continue expanding quickly in the upcoming years due to the government's emphasis on infrastructure, the economy's fast digitization, and the growing need for greater bandwidths. One of the leading companies in the Indian structured cabling business, D-Link provides a broad range of structured cabling components, services, and solutions. In the consumer wireless and switching industries, the business continues to have a sizable market share.
