Shares of Dixon Technologies (India) surged nearly 6% on 29 November to reach a 52-week high of ₹16,739. The rise came after its subsidiary, Padget Electronics, announced plans to start mass production of Google Pixel smartphones. The manufacturing initiative will take place at the company's Noida plant.
At 9:30 AM, Dixon Technologies' shares were trading over 4% higher at ₹16,482. For comparison, the Nifty 50 index has gained just 11% during the same period, making Dixon Tech a stock of interest for investors seeking to buy shares online.
Production partnership details
Padget Electronics entered a contract manufacturing agreement in February 2024 with Compal Smart Device India. This agreement focuses on manufacturing Pixel smartphones for Google's India-based operations. The production, aimed at Google's relatively affordable Pixel A series, is expected to drive Dixon Technologies' revenues over the coming financial years.
Reports suggest that Dixon Technologies may benefit from higher average realisations per unit, with each Pixel smartphone estimated at ₹25,000–₹26,000. This development is attracting investors who frequently buy shares online to explore new growth opportunities.
Government incentives to boost local manufacturing
India's Ministry of Electronics and Technology is considering a ₹400 billion incentive package aimed at boosting local manufacturing capabilities for electronic components like PCBs, camera modules, and lithium-ion cells. These incentives are expected to benefit companies like Dixon Technologies, encouraging both seasoned and new investors to buy shares online.
Dixon Technologies' financial performance in focus
In the quarter ending September 2024, Dixon Technologies reported a 264% year-on-year (YoY) growth in net profit, reaching ₹411.7 crore. The company's revenue from operations also saw a 133% jump, totalling ₹11,534 crore. With such strong financials, Dixon Tech has gained significant attention among those aiming to buy shares online in high-performing companies.
Stock performance summary
Dixon Technologies' stock has shown consistent growth, delivering returns of 150% this year alone. The latest announcement regarding Google Pixel production has reinforced investor confidence, making it a key choice for those planning to buy shares online.
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